Fed: U.S. Economy ‘Expanding Moderately

Federal Reserve policy makers said the U.S. economy is maintaining its expansion even as the global economy slows, while refraining from taking new actions to lower borrowing costs. “The economy has been expanding moderately, notwithstanding some apparent slowing in global growth,” the Federal Open Market Committee said. “While indicators point to some improvement in overall labor market conditions, the unemployment rate remains elevated.” Signs of an improving U.S. economy are giving officials led by Chairman Ben S. Bernanke leeway to keep policy unchanged as they discuss ways to improve how they communicate the likely future path of interest rates to the public. At the same time, unemployment at 8.6 percent and risks to global growth from the European debt crisis may prompt more easing in coming months. “Any additional stimulus is greatly going to depend on what happens in Europe or any changes in the U.S. outlook,” said John Silvia. They will wait for a longer meeting, maybe in January, to come up with anything regarding communications.”