US Federal Reserve Say Economy Has Weakened, But Keeps Policy The Same

The U.S. Federal Reserve Wednesday lowered its view of the U.S. economy, but kept interest rate policy and its non-traditional quantitative easing policy the same.

The Fed said "economic activity decelerated somewhat over the first half of the year," compared to a previous view of the "economy has been expanding moderately."

The world's most powerful central bank also maintained its its low-rate pledge, saying rates would remain low through "late 2014." The Fed also kept its federal funds rate target between 0 percent and 0.25 percent, adding that it "will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability."

The Fed's vote was 11-1, with Richmond Fed President Jeffrey Lacker the lone dissent.