Fed downgrades economy view, doesn't alter policy

WASHINGTON (MarketWatch)
The Federal Reserve on Wednesday downgraded its view on the economy but otherwise didn't make make any changes to its key interest rate, low-rate pledge, or asset-buying plans
The Federal Open Market Committee now says "economic activity decelerated somewhat over the first half of the year," vs. a prior description of saying the "economy has been expanding moderately."
The decision not to extend its low-rate pledge beyond the current "late 2014" came as a surprise
The Fed kept its federal funds rate target between 0% and 0.25% and said it "will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.
The vote was 11-1, with Richmond Fed President Jeffrey Lacker preferring to omit the time period over which economic conditions are likely to warrant an exceptionally low rate