Recovery has strengthened since the summer, according to Federal Reserve, which decided against further stimulus action The Federal Reserve has expressed cautious optimism about the US economy but warned of “significant downside risks” ahead. At the end of their two-day meeting, Fed officials said the economic recovery has strengthened since the summer, in part thanks to “a reversal of the temporary factors that had weighed on growth earlier in the year” when the US was feeling the impact of higher oil prices and Japan’s nuclear disaster.