Fed keeps interest rates unchanged

The Federal Open Market Committee (FOMC) decided not to change the level of interest rates, the Fed informed after the meeting. At the same time, the Committee decided to further reduce the monthly pace of asset purchases and end their purchases in March this year.

"The Committee aims to achieve maximum employment and inflation of 2 percent over the long term. In support of these goals, the Committee has decided to keep the federal funds rate target of 0-0.25 percent. With inflation well above 2 percent and a strong labor market, the Committee expects that it would soon be appropriate to raise the target range for the federal funds rate. The committee decided to continue reducing the monthly pace of net asset purchases, ending them in early March," the press release reads.

Beginning in February, the Committee will increase its holdings of treasury securities by at least $20 billion a month and mortgage-backed securities by at least $10 billion a month, the Fed said.

(ISBnews)