US Federal Reserve policymakers last night kept short-term interest rates at a 1958 low, determined to spur economic activity and escape a three-year jobs rut.
Federal Reserve chairman Alan Greenspan and his colleagues voted unanimously to maintain the federal funds rate, which banks charge each other overnight, at 1%.
Sticking to their earlier assessment, policymakers said the risks to US economic growth were balanced. 'With inflation quite low and resource use slack, the committee believes that it can be patient in removing its policy accommodation,' the central bank officials said.
The key interest rate has been at near rock-bottom levels since June last year. The rate is about zero when taking inflation into account.
