At a press conference after the interest rate resolution, Federal Reserve Chairman Colin Powell said that if the economy continues to make progress as expected, the Fed can take action at its next meeting.

Powell said that a reasonable and good employment report is needed to meet the conditions for reducing the size of debt purchases. But the threshold for raising interest rates is much higher than the threshold for curtailing bond purchases.

The Fed kept its benchmark interest rate near zero on Wednesday local time, but said it might raise rates earlier than expected and sharply cut its forecast for US economic growth this year. The Fed statement said it may soon slow the pace of bond purchases.