New York, Aug 13 (DPA) US stocks rallied Wednesday after two straight days of losses, buoyed by the Federal Reserve's more upbeat assessment of the state of the country's economy.

The US central bank said economic activity was 'levelling out' and kept its benchmark interest rates at a record low range of 0-0.25 percent.

The Fed said it would keep its federal funds rate level 'for an extended period' and said it would begin winding down its purchases of Treasury securities.

A Wall Street Journal survey earlier in the day found that 27 out of 47 economists believed the country's 20-month recession has ended.

The blue-chip Dow Jones Industrial Average climbed 120.