Fed Uses Optimistic Tone in Latest Statement

Washington, DC, March 16, 2011 -- The Federal Reserve said Tuesday it will remain on its current course of pumping more cash into the economy even though the economy appears to be improving.

"The economic recovery is on a firmer footing, and overall conditions in the labor market appear to be improving gradually," the Fed said.

The central bank acknowledged there have been significant increases in commodity prices such as oil since its last meeting, but added that it believes underlying inflation pressures remain subdued.

The Fed said it will continue its plans to buy up to $600 billion in long-term Treasuries through the end of June in an effort to spur stronger economic growth.

The Fed also left the fed funds rate, its key rate that is used as a benchmark for a wide range of consumer and business loans, near 0%, where it has been since December 2008.