On Wednesday the Federal Reserve said that the pace of the US economic decline is slowing down and they see an improvement in the overall economic conditions.  This analysis of our economy came as interests rates were kept steady at 0%.  The Federal Reserve also discussed the topic of inflation which is a concern for many with these low interest rates and recently rising commodity prices such as oil.  The Fed says that despite the increase in the prices of such commodities inflation is not a current threat to the economy.  On another topic the Federal Reserve covered the issue of the financial system in America.  The Fed said that in the past few months financial market conditions have improved and despite the layoffs, rising unemployment, and poor housing numbers we continue to hear about there is optimism that the economy is on an upswing.  The Fed announcement can greatly aid the overall consumer and investor confidence at this time.  In the past nine days the Dow Jones has fallen 500 points or 5.7%.  The drop is not completely random or unexpected however.  From March 9th, when the markets hit 12 year lows, to June 15th, the Dow had gained more than 32%.  Altho the drop of 5.7% is a stop in the market rally it can be seen as just a minor and short term correction in a very volatile economic time.