As sequestration continues to take effect, the Federal Reserve said it was sticking to its “quantitative easing” plan.

Money_Out_of_HatThe Federal Reserve said the nation’s fiscal policy is holding back its economy and signaled it may be prepared to do more to boost growth.

The central bank announced that it was continuing its ongoing efforts to stimulate the economy, keeping interest rates near zero and buying up $85 billion of bonds every month in a bid to further spur the economy.

In its latest statement, the Federal Open Market Committee (FOMC) said the U.S. economy was growing at a “moderate pace,” no thanks to its fiscal course.

“Fiscal policy is restraining economic growth,” the FOMC said.

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Source: Peter Schroeder | The Hill | May 1, 2013