The Federal Reserve Wednesday said it was holding a key interest rate at a record low as “economic activity paused in recent months.”
The Fed held the federal funds rate — the rate banks charge each other — at a zero to 0.25% rate, where it has been since December 2008. The Fed said last year it was not likely to raise the key interest rate until at least 2014.
The Federal Open Market Committee statement said that to shore up the economy, it will continue to buy mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month.
Click here for the full FOMC statement. (Federal Reserve website)