Fed Sees Signs Recession May Be Easing

By Jeannine Aversa

WASHINGTON -- The Federal Reserve on Wednesday said it see signs the recession may be easing, but warned that the U.S. economy is likely to remain weak.

Against that backdrop, Fed Chairman Ben Bernanke and his colleagues left a key interest rate at a record low of between zero and 0.25%, and decided against taking any new steps to shore up the economy.

Aggressive action already taken -- including a $1.2 trillion effort last month -- should gradually help bolster economic activity, the Fed said. It did, however, leave the door open to future action if needed.

Fed policymakers offered a less dour assessment of the economy than the one provided at its previous meeting in mid-March.

"The economy has continued to contract, though the pace of contraction appears to be somewhat slower," the Fed said. The worst of the recession -- in terms of lost economic activity -- could be past.