Snap Analysis: Fed signals end of QE, more downbeat on economy

WASHINGTON (Reuters) - The U.S. Federal Reserve on Wednesday signaled its $600 billion bond purchase program will end in June, but it offered a slightly more downbeat assessment of the economy and suggested it is in no rush to raise interest rates.

Below is a side-by-side of key phrases from the Fed's March and April policy statements and what they mean:

MARCH: The committee "intends to complete purchases of $600 billion of longer-term Treasury securities by the end of the second quarter of 2011."

APRIL: The committee "will complete purchases of $600 billion of longer-term Treasury securities by the end of the current quarter."

TAKE-AWAY: This is the Fed affirming it will end its quantitative easing program in June as planned. It made a similar language change when it ended its first round of quantitative easing.

MARCH: "The economic recovery is on a firmer footing."

APRIL: "The economic recovery is proceeding at a moderate pace."

TAKE-AWAY: The Fed is nodding to the weaker economic data seen since March. A number of Wall Street analysts have downgraded their forecasts for first quarter U.S. growth in the intermeeting period.

MARCH: "Overall conditions in the labor market appear to be improving gradually."

APRIL: "Overall conditions in the labor market are improving gradually"

TAKE-AWAY: Moving from "appears to" to "are" shows the Fed is slightly more confident about the labor market recovery.

MARCH: "The recent increases in the prices of energy and other commodities are currently putting upward pressure on inflation."

APRIL: "Increases in the prices of energy and other commodities have pushed up inflation in recent months."

TAKE-AWAY: The Fed is acknowledging recent higher inflation data, but suggesting it does not expect the pressure to continue.

MARCH: "Concerns about global supplies of crude oil have contributed to a sharp run up in oil prices in recent weeks. Nonetheless, longer-term inflation expectations have remained stable, and measures of underlying inflation have been subdued."

APRIL: "Concerns about global supplies of crude oil have contributed to a further increase in oil prices since the committee met in March. Inflation has picked up in recent months, but longer-term inflation expectations have remained stable and measures of underlying inflation are still subdued."

TAKE-AWAY: Again, the Fed is nodding to inflation picking up, but stressing that nevertheless, measures of underlying inflation -- which the Fed considers a better predictor of future inflation -- aren't making it uncomfortable.

MARCH: "The committee will regularly review the pace of its securities purchases and the overall size of the asset purchase program in light of incoming information and will adjust the program as needed."

APRIL: "The committee will regularly review the size and composition of its securities holdings in light of incoming information and is prepared to adjust those holdings as needed.

TAKE-AWAY: Here too, the Fed is signaling that the program will end in June. Instead of speaking to the overall size of the purchase program, it is now talking about it securities holdings. While in March it said it "will adjust", now it is saying it "is prepared to.".

(Reporting by Kristina Cooke)