The Federal Open Market Committee decided to keep its benchmark interest rate unchanged and low between 0.0% and 0.25% as what was already highly expected, knowing that the Feds still strongly believe that low rates will support the economy and help boost growth since the current recovery is still taking place at a slow and gradual pace.

In fact, the Committee attested that the overall economic activity has continued to gain strength but at a pace that does not help on reducing the unending high jobless levels of the country, while growth in household spending is enhancing at a moderate pace but remains pressured to the downside by the ongoing deterioration of the labor market., modest income growth, lower housing wealth, and tight credit.

However, the Fed highlighted the endless weakening of the labor market and that employers remain hesitant on adding payrolls and decided to continue on expanding its holdings of securities and its existing policy of reinvesting principal payments from its securities holdings along with its intention of purchasing $600 billion of longer-term Treasury securities by the end of the second quarter of 2011, while that it has been pointed out that prices pressures continue on being well subdued.