Feds to keep buying $85 billion in bonds per month given the still-high level of unemployment

Describing the economy as expanding moderately, Fed officials cited further improvement in the labor market and the housing sector, even as they noted that inflation was running below their 2 percent long-term goal.

In a statement after a two day meeting, the Fed’s policy-setting panel offered a more upbeat assessment of the risks facing the economy than they had after they last met in May.

“The committee sees the downside risks to the outlook for the economy and the labor market as having diminished since the fall,” the Fed said.