Fed Upgrades Economic Outlook While Affirming Bond Stimulus

Federal Reserve policy makers said U.S. growth is becoming more durable and higher energy prices will have a temporary effect on inflation as they affirmed plans to buy $600 billion of Treasuries through June.

“The economic recovery is on a firmer footing, and overall conditions in the labor market appear to be improving gradually,” the Federal Open Market Committee said today in a statement after a one-day meeting in Washington. The inflation effects of increased commodity costs will be “transitory,” and officials “will pay close attention to the evolution of inflation and inflation expectations,” the Fed said.