Fed goes on with tapering on upbeat forecastUpdated: 2014-05-01 17:48:37 (KST)
The Federal Reserve expressed confidence in the growth of the U.S. economy on Wednesday when it announced another cut in its bond-buying stimulus program.
After a two-day policy meeting, the Fed said increasing household spending and other recent economic data indicate that economic acitivies are picking up.
It said it will cut another 10 billion U.S. dollars to 45 billion a month starting in May, despite an economic slowdown in the first quarter this year.
Earlier in the day, a separate report showed that the U.S. economy grew just zero.1 percent in the first three months of this year.
The Fed said the poor growth was much anticipated and that it was largely because of the harsh winter weather.
"People are looking forward and the Fed is also looking forward. Some of the more recent data on auto sales and the Chicago PMI survey suggest that we are getting some strength, we are getting some recovery from that really tough winter."
The Fed, however, did not provide any new insight into when it will start raising its near zero interest rates, which have held steady since December 2008.
The bank reiterated that it will keep the rate unchanged for a considerable amount of time after the bond purchases end.
The Fed began cutting back its 85 billion dollar monthly bond-buying stimulus in December as it cautioned about potential bubbles in assets, while labor markets improved.
Hwang Ji-hye, Arirang News.
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