Fed keeps rates on hold and says QE2 to end (by Steve Goldstein)

WASHINGTON (MarketWatch) -- The Federal Reserve signaled concerns about economic growth Wednesday as the central bank kept its targeted Fed funds rate at a historic low between 0% and 0.25% and said it would end, as planned, its $600 billion bond purchase program in eight days. The FOMC statement said the moderate pace of the economic recovery is moving "somewhat more slowly than the Committee had expected" and said labor market conditions have been "weaker than anticipated." The Fed also was slightly more dovish on inflation, saying "inflation will subside to levels at or below those consistent with the Committee's dual mandate as the effects of past energy and other commodity price increases dissipate." The Fed will release updated economic projections at 2 p.m., and Chairman Ben Bernanke will hold a press conference at 2:15 p.m.