Fed keeps pumping despite shrinking economy

(REUTERS) — The Federal Reserve on Wednesday left in place its monthly $85 billion bond-buying stimulus plan, saying economic growth had stalled but indicating the pullback was likely temporary.

Describing the nation’s job market as continuing its modest pace of improvement, the Fed repeated a pledge to keep purchasing securities until the outlook for employment improves substantially.

“Growth in economic activity paused in recent months, in large part because of weather-related disruptions and other transitory factors,” the Fed said in its January policy statement.