The Federal Reserve said that the “pace of economic contraction is slowing” but that it “continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal-funds rate for an extended period.

The Federal Reserve also said it would “employ all available tools to promote economic recovery and to preserve price stability.” Policy makers didn’t introduce any new debt buyback plans.

Warren Buffett said in an interview yesterday that there has been little progress over the past few months in the “economic war” being fought.  “We haven’t got the economy moving yet,” While the economy is a “shambles” and likely to stay that way for some time, he remains optimistic there will eventually be a recovery over a period of years.

Today, a House Oversight Committee hearing will take place where Fed Chairman Ben Bernanke testifies on his role in the Bank of America, Merrill Lynch merger. Republican Darrell Issa in a statement released Wednesday alleged the Fed “engaged in a cover-up,” deliberately hiding

concerns about the merger from other regulators.

UK and European markets have opened down around half a percent, and U.S. markets are currently pointing to a slightly positive start as well, when their markets open this afternoon.

Sources:   Reuters: BBC: Bloomberg: Lawshare: Deutsche Bank (db): Proquote: Financial Times: Wall Street Journal: CLSA: Sharescope: Market News. Capital Economics: CNBC: Wikipedia:

Please note this report provides a guide to some of the relevant areas that individual investors should consider discussing with an authorised adviser in relation to their specific circumstances, it does not constitute individual advice. As a result no action should be taken or refrained from being taken as a result of its content.