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Still, they noted in the minutes that there have been similar bursts of hiring in the past two years that ended up fading. Members said the Fed's policies are still needed to help the recovery and stuck with their plan to keep short-term interest rates at record lows until at least late 2014. The Fed is concerned that the recovery could falter, as it did last year. Americans aren't receiving meaningful pay increases. Gas prices are high. And Europe's debt crisis could weigh on the U.S. economy. Most economists don't think Fed officials will change their interest-rate policy at the next meeting on April 24-25. But pressure could build for the Fed to begin raising rates sooner if the pace of economic growth picks up. U.S. consumers boosted their spending in February by the most in seven months, raising expectations that the economy grew at a stronger pace in the first quarter the year. The Commerce Department will release its growth estimate for the January-March quarter on April 27. Many people are more confident in the economy, despite stagnant wages and higher gas prices. The University of Michigan Consumer Sentiment Survey index rose last month to its highest level since February 2011. Fed Chairman Ben Bernanke said the combination of modest economic growth and rapid declines in unemployment is something of a puzzle. Normally, it takes roughly 4 percent annual growth to lower the rate by 1 percentage point over a year. Bernanke cautioned that he doesn't expect the unemployment rate to keep falling at its current pace without much stronger growth and more robust hiring.
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