<p>The central bank in a statement said US economic activity was "levelling out" and the financial sector had "continued to improve" in the last few weeks. Household spending, which accounts for about two-thirds of economic output, was also "stabilizing."<br /><br />The Fed has kept its benchmark federal funds rate at a 0-0.25 percent range since December and repeated that it would stay the course "for an extended period" as the economy begins to recover.<br /><br />"The committee will continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook and conditions in financial markets," the 10-member Federal Open Market Committee said at the end of a two-day meeting.<br /><br />US stocks surged more than 1 percent earlier Wednesday and continued rising after the Fed statement was released.<br /><br />The Fed's forecast is in line with the more optimistic note sounded by many economists in recent weeks. In a survey by the Wall Street Journal Wednesday, 27 out of 47 economists said the recession which began in December 2007 has ended.<br /><br />The world's largest economy shrank by only 1 percent in the second quarter of 2009, according to government figures from late July, after a massive 6.4-percent contraction in the first three months of the year.<br /><br />Unemployment also edged lower in July, dropping to 9.4 percent from 9.5 percent the previous month.</p>
<p>The central bank in a statement said US economic activity was "levelling out" and the financial sector had "continued to improve" in the last few weeks. Household spending, which accounts for about two-thirds of economic output, was also "stabilizing."<br /><br />The Fed has kept its benchmark federal funds rate at a 0-0.25 percent range since December and repeated that it would stay the course "for an extended period" as the economy begins to recover.<br /><br />"The committee will continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook and conditions in financial markets," the 10-member Federal Open Market Committee said at the end of a two-day meeting.<br /><br />US stocks surged more than 1 percent earlier Wednesday and continued rising after the Fed statement was released.<br /><br />The Fed's forecast is in line with the more optimistic note sounded by many economists in recent weeks. In a survey by the Wall Street Journal Wednesday, 27 out of 47 economists said the recession which began in December 2007 has ended.<br /><br />The world's largest economy shrank by only 1 percent in the second quarter of 2009, according to government figures from late July, after a massive 6.4-percent contraction in the first three months of the year.<br /><br />Unemployment also edged lower in July, dropping to 9.4 percent from 9.5 percent the previous month.</p>