The Federal Reserve on Wednesday maintained its $85 billion per month asset purchase program, hoping to steer the U.S. economy through yet another rough patch.
Lingering weakness in the jobs market has convinced most policy makers not to reduce the stimulus this year, even though some say the central bank has already done its share to assist the U.S. recovery.
The Fed expects "economic growth will proceed at a moderate pace and the unemployment rate will gradually decline toward levels the Committee judges consistent with its dual mandate," according to a statement following the two-day meeting that ended today.
The Fed has pledged extraordinarily low interest rates until the jobless rate falls below 6.5 percent, but most voting members do not see that level of improvement until 2015.
The government's latest reading shows the unemployment rate at 7.6 percent. That figure is expected to hold steady when the Labor Department releases its April report on Friday.
Automatic Data Processing said this morning that the private sector added only 119,000 jobs in April, down from 131,000 in March and the weakest gain since September.
In short, the Fed will continue its $85 billion a month quantitative easing program for now, and will keep interest rates near zero for the foreseeable future. Policy makers said they are prepared to adjust the size of the monthly asset purchases as more data becomes available.
The Fed offered a mixed assessment of the economy:
"Labor market conditions have shown some improvement in recent months, on balance, but the unemployment rate remains elevated. Household spending and business fixed investment advanced, and the housing sector has strengthened further, but fiscal policy is restraining economic growth," today's statement read.
Today's decision was not unanimous. Esther L. George, who was concerned about long-term inflation expectations, voted against her colleagues for the third time this year.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.