Washington: The Federal Reserve kept its benchmark interest rate at near zero percent Wednesday and showed no signs of changing course as the US begins to emerge from a 20-month recession.
The central bank in a statement pointed to signs that US economic activity was "leveling out" and said the financial sector had "continued to improve" in the last few weeks.
The Fed has kept the federal funds rate at a 0-0.25 percent range since December and repeated that it would stay the course "for an extended period" as the economy begins to recover.
But the Fed did suggest it was easing some of its unprecedented interventions in financial markets. It would "gradually slow the pace" of its buying of $300-billion worth of Treasury securities. The purchases should be completed by October.
IANS
First Published: Thursday, August 13, 2009, 08:37