Fed Boosts View of Economy

The Federal Reserve said it would scale back its purchases of mortgage and Treasury bonds to $25 billion monthly and delivered a modestly more upbeat assessment of inflation, jobs and the economy, hours after a stronger-than-expected U.S. growth report.

"Economic activity rebounded in the second quarter," the Fed said in its July policy statement, noting the labor market is improving, the jobless rate declining and inflation moving closer to its 2% objective. It included a qualifier noting that a range of indicators suggest there is still "significant" slack in the...