Fed reassessment breaks even

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WASHINGTON, Aug. 22 (UPI) -- Revised data showed the U.S. recession not as deep and the recovery not as quick as previously thought, the U.S. Federal Reserve said Wednesday.

The minutes of the Fed's July 31-Aug. 1 Open Market Committee meeting explains that, "revised data for 2009 through 2011 from the Bureau of Economic Analysis indicate the recession had been slightly less deep and the early part of the subsequent recovery had been a bit more gradual than previously thought."

The two revisions would appear to cancel each other out and the Fed states that was so.

The conclusion from the revised data is that "the level of real gross domestic product at the end of last year (was) essentially the same as estimated earlier," the Fed said.

At the policy meeting, the Fed decided to leave its federal fund rate intact at zero to 0.25 percent. The Fed also decided to continue with its "operation twist," which involves allowing using proceeds from maturing short-term debt to purchase long-term debt, a swap meant to convince businesses that borrowing will remain affordable long-term.