Wednesday, April 29, 2009

Stocks are holding on to big gains as the Federal Reserve says it sees the recession easing.

The central bank left interest rates at a record low level Wednesday after a two-day meeting.

The Fed says the economy will remain weak but that the "pace of contraction appears to be somewhat slower."

Stocks have been higher as investors look to bright spots in a report on weaker-than-expected economic output for the first three months of the year.

The Dow Jones industrial average is up 175 at the 8,193 level. It had been up 182 ahead of the announcement.

The Standard & Poor's 500 index is up 20 at 875, a three-month high. The Nasdaq composite index is up 41 at 1,715.