WASHINGTON — The Federal Reserve sounded a more confident note Wed nesday that the economy is strengthening but pledged to hold rates at record lows to make sure it gains traction.
Wrapping up a two-day meeting, the Fed in a 9-1 decision retained its pledge to hold rates at historic lows for an “extended period.” Doing so will help energize the recovery.
The Fed offered a more upbeat view of the economy even as it noted that risks remain. It said the job market is “beginning to improve,” an upgrade from its last meeting in mid- March. It observed then that the unemployment situation was merely “stabilizing.” The Fed also noted that consumer spending has “picked up,” an improvement from its last observation that spending was expanding at a “moderate pace.”
Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, for the third straight meeting was the sole member to dissent from the Fed’s decision to retain the “extended period” pledge.
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