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The Federal Reserve decided to cut its monthly asset-purchase program by another $10 billion to $45 billion ($25 billion of longer-term treasury securities and $20 billion of mortgage-backed securities).

The statement released at the end of the two-day meeting was a little more upbeat than the previous one,  noting the pickup in economic activity, except in labor markets.

Information received (since the last meeting) indicates that growth in economic activity has picked up recently, after having slowed sharply during the winter in part because of adverse weather conditions. Labor market indicators were mixed but on balance showed further improvement”.

The Committee currently judges that there is sufficient underlying strength in the broader economy to support ongoing improvement in labor market conditions”.

The forward guidance remained unchanged: “It likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Committee's 2% longer-run goal, and provided that longer-term inflation expectations remain well anchored

All nine voting members of FOMC supported the monetary action.

The Fed did not release updated economic projections nor will Janet Yellen hold any press conference; those are done once in a quarter.

Though the move was largely expected by the markets, some analysts were wondering whether this morning’s GDP report would impact Fed’s taper plans.

Did the move surprise you?

Zacks Releases Their 7 Best Stocks for August, 2014

These 7 were hand-picked from the list of 220 Zacks Rank #1 Strong Buys with earnings estimate revisions that are sweeping upward. Their stock prices are expected to rise sooner than the others.

Today, this Special Report is available to new Zacks.com visitors free of charge.

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