Fed: Economy growing moderately; no policy changes

The Federal Reserve says the economy is growing moderately, yet cautions that risks from Europe remain. It’s holding off on taking any further steps to boost the recovery. In a statement after a two-day meeting, the Fed today says economic growth should “pick up gradually”—a slightly better outlook than was given a quarter ago. It says the job market has strengthened slightly but that unemployment remains elevated. And it points to a pickup in inflation, but says that increase should only be temporary. The Fed stuck with its plan to keep a key short-term interest rate near zero through at least late 2014 and announced no new plans for further bond buying after a current program ends in June. Its decision to leave its policy unchanged had been widely expected, and reaction in financial markets was muted. Fed Chairman Ben Bernanke will meet with reporters later Wednesday, marking a year since he began holding quarterly news conferences as a way to provide more openness about the Fed’s decision-making process. Read the full story from The Associated Press here.