Fed to stay with bond-buying program

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WASHINGTON, Oct. 24 (UPI) -- The Federal Reserve said Wednesday it will proceed with efforts to stimulate the U.S. economy and maintain its open-ended, bond-buying program.

The Fed said in a statement at the end of its two-day policy meeting "economic growth might not be strong enough to generate sustained improvement in labor market conditions" if it does not maintain its stimulus policy, The Washington Post reported.

The Fed said after its Open Market Committee meeting in September it would increase purchases of mortgage-backed bonds and has set a target of spending $143 billion through the end of 2012, in an effort to promote economic growth and employment.

Wednesday's statement said consumer spending and inflation have picked up but, the higher inflation was due mainly to energy costs and prices were stable overall.

The statement said business investment has slowed and "the unemployment rate remains elevated" with slow growth in employment.

The Fed said, as it did last month, its policies will "remain appropriate for a considerable time after the economic recovery strengthens."