Fed Rates Untouched (Update)

Click here for the Fed's full statement.

As expected, the Federal Reserve left its key interest rate intact today at near 0%. But sometimes it's what they don't say that's more important.

Investors had been eagerly awaiting today's announcement, as a raise in the key rate could have slowed or derailed hopes for an economic recovery this year. The announcement came following a two-day monetary policy meeting of the Federal Open Market Committee.

"Information received since the Federal Open Market Committee met in April suggests that the pace of economic contraction is slowing," the committee's statement read. "Conditions in financial markets have generally improved in recent months."

With an eye on inflation, though, some were left puzzled because the group made no mention of a so-called "exit strategy" from its current asset buying plan. In recent months, the Fed has taken on twice as many assets on its balance sheet in an attempt to unfreeze credit, but many wonder how those assets will unwind in the future.

"Some parts of the markets would have liked to see a more strategic look at a so-called exit strategy," Stuart Hoffman, Chief Economist for PNC Financial Services, said. "They chose not to say a word about exit strategy, which I think they need to do and will do by August."

Despite the lack of clarity on that front, many investors responded favorably to the news that the Fed did not increase its asset purchase forecasts for the year. The Fed said that it will buy up to $1.25 trillion of agency mortgage-backed securities, along with $200 billion of agency debt. It will also purchase up to $300 billion in Treasuries by the fall.