MW: Fed sees growth pickup, extends debt buying plan
By Greg Robb
WASHINGTON (MarketWatch) -- Federal Reserve officials welcomed the improving economy and may a few changes to their debt buying plans. In a statement after their closed door meeting, Fed officials said that economic activity has "picked up" with improved conditions in financial markets. The Fed announced that it has extended its purchase of mortgage-backed securities and agency debt into the first quarter of 2010 from December. Analysts had expected the move, which smoothes out the purchases. As expected, the Fed kept its target for its federal funds rate set at a range of zero to 0.25%. The Fed repeated that it "continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period."
