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Fed looks bullish on economy

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By JEANNINE AVERSA

The Associated Press

Published: August 13, 2009

WASHINGTON - The Federal Reserve delivered a vote of confidence in the economy Wednesday, saying it would slow the pace of an emergency rescue program as the recession appears to be ending.

The central bank also held a key banking lending rate at a record low near zero and again pledged to keep it there for "an extended period" to nurture an anticipated recovery.
Fed Chairman Ben Bernanke and his colleagues said barometers suggest that "economic activity is leveling out." That marked an upgrade from their last meeting, in June, when Fed policymakers merely observed that the recession was easing because the pace of the economy's contraction was slowing. The Fed also noted Wednesday that conditions in financial markets "have improved further."

"I think the Fed is feeling increasingly comfortable about where the economy is going," said Mark Zandi, chief economist at Moody's Economy.com.

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