Ahead Of The Bell: Jobless Claims

The cuts reflect the depth of the downturn, which has been global in scope. The Commerce Department on Wednesday said the U.S. economy shrank at a 6.1 percent pace in the first quarter, worse than the 5 percent annualized decline that economists expected. The weak economic performance nearly matched the 6.3 percent contraction in the final three months of last year, which was the worst pace in a quarter-century.

But Federal Reserve Chairman Ben Bernanke and his colleagues left a key interest rate at a record low of between zero and 0.25 percent, 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.

The Obama administration is counting on its $787 billion stimulus package, enacted in February, to "save or create" 3.5 million jobs.

The Labor Department reported Wednesday that all 372 metropolitan areas tracked saw jobless rates rise last month from a year earlier. And more job losses were announced this week.