NEW YORK - Investors sent stocks higher Wednesday after comments from the Federal Reserve and reports on service industries and employment raised hopes about the economic recovery. The market gave up some of its gains after the House voted to speed up the effective date of limits on credit card companies.

The Fed, as expected, left its benchmark interest rate unchanged at a record low of essentially zero and said the economy is slowly rebounding. The decision followed reports on service industries and employment eased two of the biggest worries about the economy.

The Fed's statement accompanying its rate decision noted that housing activity has picked up in recent months. It also said consumer spending, while still constrained by unemployment and other problems, appears to be growing.

Policymakers said they would keep interest rates low for an "extended period" and said inflation is likely to remain tame. That eased some worries that rising prices would force the Fed to boost interest rates and risk cutting off a nascent recovery in the economy.

"It's definitely dovish. We think it supports continued market progress over the next few months," said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland.

Meanwhile, the House approved new rules for credit card companies unless lenders agree to freeze interest rates and fees. The vote would move up the February effective date of legislation already passed by Congress that limits what banks can charge for credit cards.

It didn't appear likely that the Senate would also pass the measure, but the House vote still unnerved the market.

Investors have grown fearful that the economic rebound they've been betting on over the past eight months will be fleeting, considering that job losses remain high and consumers still aren't spending freely. Stocks have zigzagged over the past few weeks amid the heightened uncertainty.

The day's economic reports bolstered hopes that consumers could increase consumer spending, a critical factor for an economic recovery.

The Institute for Supply Management said service industry activity grew for a second straight month in October. The trade group's service index slipped to 50.6 from 50.9 in September. A reading above 50 signals growth.

The index didn't meet forecasts but the ISM said new orders, which are an indicator of future business activity, grew faster. Business activity also picked up.

Encouraging news about the labor market also boosted investors' mood. The ADP National Employment Report said 203,000 private sector jobs were lost in October, down from the 227,000 lost in September.