Fed: US economy losing strength

Fed: US economy losing strength

WASHINGTON

The Federal Reserve said Wednesday that the U.S. economy is losing strength and repeated a pledge to try to boost growth if hiring remains weak.

The Fed took no new action after a two-day policy meeting. But it appeared to signal in a statement released after the meeting a growing inclination to take further steps to lift the economy out of its funk. The Fed noted that growth had slowed over the first half of the year, with job creation slackening and consumer spending tapering off.

The Fed reiterated its plan to hold its benchmark short-term interest rate near zero until at least late 2014.

Market reaction to the Fed’s announcement was muted. Stocks fluctuated slightly after the statement was released and ended the day lower.

Vindicator wire report