Stocks Higher on Unchanged Fed Rate

(AP) -- Stocks are closing higher after the Federal Reserve kept its benchmark interest rate unchanged at historic lows.

The central bank said Wednesday that it was seeing some improvement in the economy, but not enough to start raising interest rates.

The Fed has kept its benchmark rate near zero for more than six years in an effort to bolster the economy and encourage borrowing, lending and investment.

The Dow Jones industrial average climbed 31 points, or 0.2 percent, to 17,935.

The Standard & Poor's 500 rose four points, or 0.2 percent, to 2,100. The Nasdaq composite gained nine points, or 0.2 percent, to 5,064.

Stocks had been lower before the Fed released its policy statement.

The yield on the 10-year Treasury note was unchanged at 2.31 percent from a day earlier.

(KA)