Jul 31, 2013 2:59 PM by Posted by Bill Folsom
WASHINGTON (AP) - The Federal Reserve now says the U.S. economy is growing modestly. That's a downgrade from its June assessment. In a statement after a two-day policy meeting, the Fed says it will keep buying $85-billion-a-month in bonds to help lower long-term interest rates. And it says it plans to hold its key short-term rate at a record low near zero at least as long as the unemployment rate stays above 6.5 percent and the inflation outlook remains mild.