The Federal Reserve (Fed) said Wednesday that the recession is easing and signaled that the weak U.S. economy likely will keep prices under control despite growing worries that the trillions of dollars it has injected into the financial system will ignite inflation. Following a two-day meeting on interest rates, which remain at a historic low near zero percent, Fed policymakers said the “pace of economic contraction is slowing” and that conditions in financial markets have “generally improved in recent months.” The central bank chiefs said forceful Fed actions, along with President Barack Obama's stimulus of tax cuts and increased government spending, are contributing to a “gradual” return to economic growth. Fed Chairman Ben Bernanke has predicted the recession will end later this year. Some analysts believe the economy will resume growth as soon as the third quarter. Regarding inflation, the Fed said that despite recent increases in energy and commodity prices, price pressure will remain “subdued for some time.”
