Economy Watch MSNBC
Wed, 20 Jun 2012 11:45 CDT
Confronted with a stumbling U.S. recovery and a financial crisis in Europe, the Federal Reserve decided Wednesday that it would extend a program known as "Operation Twist" aimed at pushing down long-term interest rates and boosting the economy.
The Fed said in a statement
that while the economy has been expanding modestly throughout the year, growth in employment has slowed recently and unemployment remains elevated.
The Fed expects economic growth to continue to grow moderately over coming quarters and then to pick up gradually. "Consequently, the Committee anticipates that the unemployment rate will decline only slowly toward levels that it judges to be consistent with its dual mandate," the statement said.
The Fed voted to keep interest rates unchanged at historic lows.