Fed holds steady on interest rates, cuts stimulus further

Federal Reserve policymakers offered no suggestions that they will raise interest rates as they cut their monthly bond-buying stimulus program by another $10 billion and held interest rates steady at near zero.

The Federal Open Market Committee said it expected that interest rates would remain at their rock-bottom level for "a considerable time" after the bond-buying program ends. The program is on track to conclude in October.

The Fed began the bond-buying program in September 2012, purchasing $85 billion a month in Treasury and mortgage-backed securities to try to lower long-term interest rates and stimulate economic growth.

The program -- the third round of so-called quantitative easing -- along with other stimulus efforts have caused the Fed's balance sheet to more than quadruple to $4.4 trillion since 2008.

Fed policymakers decided in December 2013 to start tapering the purchases. Beginning in January, the Fed has voted to reduce the purchases by $10 billion a month at each of its meetings this year.

Wednesday's decision means the Fed will purchase $15 billion in bonds next month, when it is expected to vote to end the program.

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