Stocks were moving higher Wednesday  afternoon after the Federal Reserve did . . . nothing.

The Dow Jones industrials ($INDU) briefly hit a new intraday high before falling back, and the Standard & Poor's 500 Index ($INX) came within 4 points of hitting its 2007 peak close.

After a two-day meeting, the central bank said  it would keep interest rates at ultra-low levels. It will continue to buy Treasury and mortgage securities at a rate of up to $85 billion a month for the foreseeable future, to further the economic recovery along.

It also sees a touch slower growth in 2013 than it forecast in December. That may be due to fiscal policy becoming "somewhat more restrictive." In other words, sequestration is acting as a drag on the economy. But the Fed also see unemployment improving a touch more quickly than thought. 

The bottom line is the debate about whether the Fed should stop its bond-buying program, known as quantitative easing, will continue because the domestic economic recovery is weak. The financial crisis in Cyprus is a worry, Fed Chairman Ben Bernanke said, but it should not threaten the global banking system.

Investors in stocks, meanwhile, appeared to be reasonably happy. The Dow closed up 56 points to 14,512. Its new intraday of 14,547 was reached around 2:30 p.m. EDT. The S&P 500 gained 10 points to 1,559, about six points below its closing high of 1,565.15, set on Oct. 9, 2007.

The Nasdaq Composite Index ($COMPX) was up 25 points to 3,254.

The S&P 500 and Nasdaq were enjoying their first up days after three days of losses.

The stock market rally pulled cash from bonds, and yields moved higher. The 10-year Treasury yield hit 1.937%, up from 1.908% on Tuesday.

The Fed did see the economy growing moderately again after getting stalled by the effects of Superstorm Sandy on the East Coast in November.

The labor market has shown "signs of improvement," although the unemployment rate "remains elevated." The housing market is gaining strength, but the Fed called out the effects of tightening federal spending. Fed Chairman Ben Bernanke said a new tightening of spending could cut economic growth by one-and-a-half percentage points.

The debate over the Fed's bond-buying program centers around whether that program will set off wild inflationary pressures and destabilize the economy. And critics argue that the bond buying hasn't done much for the economy.

So far, the Fed has argued, the bond buying has not hurt the economy, and Bernanke suggested in his news conference Wednesday afternoon that the Federal Open Market Committee will continue its campaign. It doesn't expect to start moving until unemployment rate drops below 6.5%.

The first reading on February unemployment was 7.7%. And inflation has to move a half percentage point above the Fed's long-run target of 2%.

Twenty-four of the 30 Dow stocks were higher, led by American Express (AXP) and Walt Disney (DIS).

Caterpillar (CAT) was the laggard after reporting weak sales around the world in February. Especially weak has been the company's Asia/Pacific Region, down 26% over the three months ended in February. The Americas was showing a 12% decline.

FedEx (FDX) was the S&P 500 laggard, down $7.33 to $99.13 after reporting earnings fell 31% from a year ago, more than expected. It also cut its 2013 earnings guidance. The company cited weakness in express business, particularly from the United States to Asia.

Gold (-GC) moved down slightly to $1,607.50, but crude oil (-CL) for May delivery settled at $93.50 a barrel, up 98 cents. 

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