Economy "paused" last quarter
The Federal Reserve took no action after a two day policy meeting even though it says the economy paused in recent months. It did reaffirm its commitment to boost the sluggish economy by keeping borrowing cheap for the foreseeable future. Last month The Fed said it would keep its key short-term interest rate at a record low until the unemployment rate fell below 6.5% and it would keep buying $85 billion a month in Treasury and mortgage bonds to keep borrowing costs low and encourage spending. The Fed says the slowdown in the economy was due to temporary factors. It was the first time the economy shrank since 2009.