FXstreet.com (Barcelona) - The Federal Reserve's Monetary Policy Committee has decided to maintain the target range for the federal funds rate at 0% to 0.25% while observes a slowdown in the pace of economic contraction.
As widely expected, the Fed has approved unanimously to keep interest rates unchanged, while adverts slight improvements in economy, as household spending has shown signs of stabilizing despite being constrained by job losses, the decline in housing wealth and tighter credit conditions.
However, the Fed expects economic activity to remain weak for a time, and in this sense the Federal Reserve will continue acting in order to stabilize financial markets and institutions.
The Fed expects that, in the light of the global economic slack, inflation will remain in levels below rates that best foster economic growth and price stability in the longer term in these circumstances the Federal reserve has reaffirmed its intention to employ all available tools to promote economic recovery and to preserve price stability.
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