Remarks reveal worries about the pace of the economy’s recovery.
By Ylan Q. Mui, Wednesday, May 1, 2:55 PM
The Federal Reserve on Wednesday broached the possibility of increasing its massive stimulus program if the economy weakens, suggesting it remains worried that the recovery could stall.
The Fed has been purchasing $85 billion in bonds a month in an effort to keep long-term interest rates low and stoke demand. The program is tied to improvement in the labor market, and officials had begun talking about tapering it off after several strong months of job growth earlier this year.
But after its two-day policy-setting meeting wrapped up Wednesday, the central bank explicitly stated for the first time that it could increase, as well as reduce, bond purchases “as the outlook for the labor market or inflation changes.” ...