US stocks surged more than 1 percent earlier Wednesday and continued rising after the Fed statement was released.

The Fed's forecast is in line with the more optimistic note sounded by many economists in recent weeks. In a survey by the Wall Street Journal Wednesday, 27 out of 47 economists said the recession which began in December 2007 has ended.

The world's largest economy shrank by only 1 percent in the second quarter of 2009, according to government figures from late July, after a massive 6.4-percent contraction in the first three months of the year.

Unemployment also edged lower in July, dropping to 9.4 percent from 9.5 percent the previous month.