Wednesday, November 4, 2009

Stocks are holding on to most of their gains after the Federal Reserve left its benchmark interest rate unchanged and said the pace of economic activity has improved.

The Fed was expected to keep interest rates at a record low of essentially zero. The central bank's statement accompanying its rate decision Wednesday has confirmed that the economy is slowly recovering.

Policymakers said they would keep interest rates low for an "extended period" and said inflation is likely to remain tame.

After the Fed's announcement, the Dow is up 94 at 9,865. It had been up 115 ahead of the announcement. Stocks tend to fluctuate after central bank meetings.

The Standard & Poor's 500 index is up 8 at 1,055, while the Nasdaq composite index is up 13 at 2,070.