Federal Reserve policy makers raised their assessment of the economy as the labor market gathers strength and refrained from new actions to lower borrowing costs.

"Labor market conditions have improved further; the unemployment rate has declined notably in recent months but remains elevated," the Federal Open Market Committee said in a statement at the conclusion of a meeting today in Washington. It said "strains in global financial markets have eased, though they continue to pose significant downside risks to the economic outlook."

The best six-month streak of job growth since 2006 may not be enough to convince Chairman Ben S. Bernanke and fellow policy makers they can meet their goal of maximum employment without additional easing measures. Bernanke last month told U.S. lawmakers that the job market remains "far from normal" even as it showed signs of improvement.