WASHINGTON (MarketWatch) - The Federal Reserve on Wednesday held its
asset-purchase program steady, putting off any decision for tapering
until later in the year. By a 9-1 vote, the Fed plans to continue to buy
$85 billion a month in Treasurys and mortgage-backed bonds. The central
bank pointed to an elevated unemployment rate and said government
spending cuts and rising mortgage rates are "restraining economic
growth." The Fed said it will wait for "more evidence that progress will
be sustained" before it starts to cut its asset purchases. The move
surprised economists, who had expected a "tiny taper" in a range of $10
billion to $20 billion. And Wall Street could be unnerved by renewed Fed
concerns about the health of the U.S. economy. The Fed, in its
statement, sought to reassure investors by noting gradual improvement in
the economy over the past year. The bank said it still believes growth
will accelerate in the near future.
