Federal Reserve keep US interest rates the same



US

US

The Federal Reserve has suggested that they will continue to stick with the record low interest rate of 0.25% in American, which has been the same since December 2008.

The Reserve said they would like to continue with their $600billion Treasury bond-purchase plan, which they believe will strengthen the US economy in its own.

Members of the committee voted last week unanimously to keep rates the same, and did not mention the earthquake in Japan that looks likely to have an impact on the global recovery.

Chris Low, an analyst from FTN Financial in the states, said, “In light of the ongoing crisis in Japan and uncertainty about financial and economic repercussions yet to come, the Fed is firmly and unanimously in wait-and-see mode.”

The bank’s decision to keep interest rates the same was expected by many, and the bank released a statement saying they believed “the economic recovery is on a firmer footing,” before adding, economic conditions were “likely to warrant exceptionally low levels for the federal funds rate for an extended period”.

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