Fed Sees Improving Economy Reducing Need for Stimulus

Federal Reserve policy makers see the improving economy reducing the need for new stimulus even as they stick to a plan to hold the benchmark interest rate near zero at least through late 2014.

Fed officials called for additional stimulus only “if the economy lost momentum” or if inflation stays below their 2 percent inflation target, according to minutes of their March 13 meeting released yesterday in Washington. That contrasts with their January meeting minutes, in which some policy makers saw the economy requiring additional action “before long.”