WASHINGTON (AP) — The Federal Reserve on Wednesday stood by its extraordinary efforts to stimulate the economy because unemployment remains high at 7.6 percent. The Fed said the economy and job market have been improving only moderately, held back by government spending cuts and tax increases.
After a two-day policy meeting, the Fed maintained its plan to keep short-term interest rates at record lows at least until unemployment falls to 6.5 percent.
And it said it will continue to buy $85 billion a month in Treasury and mortgage bonds. The bond purchases are intended to keep long-term borrowing costs down and encourage borrowing and spending.
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