24 Jun 2010

US interest rates kept on hold

1:29 pm on 24 June 2010

The US Federal Reserve has kept interest rates on hold at near zero to keep the economic recovery from stalling.

Federal Reserve chairman Ben Bernanke says household spending is increasing, but remains constrained by high unemployment.

Mr Bernanke says subdued inflation and other factors are likely to warrant keeping rates at their historic lows.

The decision comes as housing data shows sales of family homes plunged by a third in May, as Amercians continued to worry about the stagnant job market.

The Fed has kept its short term interest rates in the zero to 0.25% range since December 2008.