The Federal Reserve has stayed the course on tapering its stimulus for the US economy, reducing asset purchases by $US10 billion ($A11.43 billion) for the second month in a row.
Amid emerging-market turmoil blamed in part on its stimulus reduction, the Fed, as expected, cut the monthly bond-buying program to $US65 billion beginning February and left its benchmark interest rate near zero, citing "growing underlying strength in the broader economy".
Wrapping up the final meeting of the Federal Open Market Committee under departing chairman Ben Bernanke, policy makers noted that despite some mixed economic indicators since their December meeting, overall the US economy was doing better.
Information indicates "that growth in economic activity picked up in recent quarters", the FOMC said in a statement on Wednesday.
That was a bit more upbeat than its December assessment of the economy "expanding at a moderate pace".
"The Committee sees the risks to the outlook for the economy and the labour market as having become more nearly balanced," it said.
There were few changes or surprises in the statement, said Ryan Sweet of Moody's Analytics.
"If there was any surprise, it was the Fed's decision not to cite international downside risks. The Fed was not going to be specific by mentioning emerging markets, but policy makers didn't acknowledge the recent strains in global financial markets," Sweet said.
The FOMC, appearing to acknowledge the shockingly weak December US jobs report, which many economists blamed on severe winter weather, said that "labour market indicators were mixed but on balance showed further improvement".
The FOMC pointed out that the unemployment rate fell "but remains elevated". The jobless fell to 6.7 per cent in December largely due to people dropping out of the work force.
Household spending and business fixed investment has sped up in recent months, it noted, while the housing recovery was slowing.
Although fiscal policy remained a hindrance to growth, the impact of government budget cuts and tax increases was "diminishing", the Fed officials said.
Meanwhile expectations for inflation, running below the Fed's 2.0 per cent target, "have remained stable".
The Fed, whose dual mandate is maximum employment and price stability, said that conditions were appropriate for a further "measured" tapering of stimulus.
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