Fed commits to long-term low interest rates

The US economy may be on the up but the interest rates aren’t. The Federal Reserve, the country’s central bank, has decided to keep key rates close to zero to for a long time to aid recovery in the world’s biggest economy.

Slashing interest rates was one of a raft of measures taken by the government to try turn around the worst recession since the 1930s.

After two days of discussions the Fed’s Open Market Committee agreed that despite signs of improvement in the economy it was too soon change its policy.

In recent weeks evidence of recovery has been growing. It is expected figures to be released in the coming days to support that view. But after a financial meltdown caused in part by over-confidence in the economy the governement is unwilling to take any chances.

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tags: Federal Reserve, USA