The Federal Reserve showed on Wednesday it was in no rush to cut short its rescue of the U.S. economy, saying high unemployment still justified its $600 billion bond-buying plan even though the economy has shown some signs of improvement.In a statement that was a bit more upbeat than after its meeting in December, the Fed acknowledged for the first time a rise in commodity prices that has fueled global inflation, but signaled it would not throw the U.S. central bank off course.The Fed noted that underlying U.S. inflation has been "trending downward," a contrast in tone with other central banks around the world worried about price growth. [Read the full article]

China's annual economic growthis expected to ease to about 9 percent in the first quarter whileconsumer inflation is projected at 5 percent, according to agovernment think tank report published in the official ChineseSecurities Journal on Thursday.The economy grew 9.8 percent in the fourth quarter from ayear earlier, while annual consumer inflation eased to 4.6percent in December from a 28-month high of 5.1 percent hit themonth before, according to data published last week.[ID:nTOE70J02S]The State Information Center said in the report that Chinafaces higher inflation risks this year from rising food priceexpectations, a real estate market that is getting harder tocontrol and an investment rush by local governments.The country's top economic planning agency has said pricepressures will stay high in the first quarter due to importedinflation. [Read the full article]

The most important change to its statement was a reference to rising commodity prices. Although commodity prices have risen, longer-term inflation expectations have remained stable, and measure of underlying inflation have been trending downward, said the rate-setting federal open market committee at the end of a two-day meeting on Wednesday.You have viewed your allowance of free articles. If you wish to view more, click the button below.The most important change to its statement was a reference to rising commodity prices. Although commodity prices have risen, longer-term inflation expectations have remained stable, and measure of underlying inflation have been trending downward, said the rate-setting federal open market committee at the end of a two-day meeting on Wednesday.You have viewed your allowance of free articles. If you wish to view more, click the button below. [Read the full article]

Federal Reserve policy makers voted unanimously on Wednesday to continue the central bank’s $600 billion plan to spur the recovery by buying government bonds.Ben S. Bernanke, chairman of the Federal Reserve, received something of a vote a confidence in the unanimous decision.They took note of a rise in commodity prices, but reiterated their view that long-term inflation expectations had been stable and inflation had trended downward. The Fed’s preferred measure of inflation excludes food and energy, which tend to have volatile prices.The mention of rising commodity prices was a slight but notable acknowledgement of concerns that the bond-buying plan could eventually touch off inflation — concerns that the Fed deems to be unwarranted for now. [Read the full article]