The Federal Reserve inched toward a new program to purchase long-term U.S. Treasury securities, possibly the next step in the central bank's battle against a recession that it said has only deepened in recent weeks.

"Industrial production, housing starts and employment have continued to decline steeply, as consumers and businesses have cut back spending," Fed officials said Wednesday in a policy statement following a two-day meeting of the Federal Open Market Committee, which sets the central bank's direction. "Furthermore, global demand appears to be slowing significantly."

The Fed has already pulled its main lever for managing the economy as far as it can. Its benchmark short-term interest rate -- the federal-funds rate -- hovers near zero, and policy makers reiterated the rate would remain low "for some time."

With the funds rate about as low as it can go, officials are focused on developing new lending and asset-purchase programs to bring down an array of other interest rates and boost the economy.

On the list of next steps could be an effort to buy long-term government debt, which could in effect lower rates on mortgages and other debt. But the Fed is taking a slow path toward embracing the idea, something that has unsettled some investors. Disappointed that the central bank didn't take a more decisive step toward buying government bonds, investors sold Treasury bonds Wednesday.