WASHINGTON, Aug 1: The Federal Reserve downgraded its assessment of the US economy on Wednesday saying growth had slowed, but shied away from launching a fresh round of economic stimulus.

“Economic activity decelerated somewhat over the first half of this year,” the Fed said at the conclusion of a two-day top-level meeting as it left current monetary policies in place.

The interest rate-setting Federal Open Market Committee said it expected “economic growth to remain moderate over coming quarters and then to pick up very gradually.” “The unemployment rate will decline only slowly.” But there was no new action to juice the economy.

Instead bank policymakers reiterated their pledge to leave interest rates close to zero until the end of 2014 and said they stood ready to act.

The Fed has kept interest rates at historic lows, between zero and 0.25 per cent, since December 2008.—AFP