Markets were subdued Wednesday ahead of a run of U.S. economic news that should provide a clearer steer on the state of the world's largest economy and what further steps the Federal Reserve might take in the months ahead.
The Federal Reserve says growth "paused" in recent months and reaffirmed its commitment to boost a sluggish U.S. economy by keeping borrowing cheaply for the foreseeable future.
The U.S. economy is already being hurt by the "fiscal cliff" standoff in Washington, Federal Reserve Chairman Ben Bernanke said Wednesday. But Bernanke said the Fed believes the crisis will be resolved without significant long-term damage.
The Federal Reserve says it will keep spending $45 billion a month to sustain an aggressive drive to keep long-term interest rates low, with the express purpose of hitting the accelerator on economic growth until unemployment drops below 6.5 percent.
The Federal Reserve says the economy has grown moderately as hiring and consumer spending have improved. As a result, it's holding off on any new steps to boost the economy. But Fed officials, noting that unemployment remains high and global economic growth has slowed, left open the possibility of taking new steps next year if the economy worsens.