The "modest pace" of U.S. economic growth has given the Federal Reserve Board some hope for a pickup from its recent pace, and that "the unemployment rate will gradually decline." Moreover, "downside risks" for the economic outlook and the labor market have diminished, the Fed said.
Output for the second quarter grew by 1.7 percent, the Bureau of Economic Analysis said earlier in the day, compared to 1.1 percent in the first three months.
Even so, the Fed's Open Market Committee said it will keep a close eye on things, and will continue to add $85 billion monthly to the money stream as it buys mortgage-backed securities and Treasury securities. This to keep the target interest rate for federal funds at zero to a quarter of a percent.
All of which is to say that the nation, and the world, is not yet out of the economic wallows, and the possible danger of more trouble to come is still there.
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