Radio New Zealand - Te Reo Irirangi o Aotearoa

US Federal Reserve holds interest rates

Updated at 10:55 am on 17 March 2010

In the United States, the Federal Reserve has held benchmark interest rates near zero and continued to say it will keep them exceptionally low for some time.

The Federal Open Market Committee voted 9-1 to keep the federal funds rate in the 0% to 0.25% range.

The central bank says the economy is on a stronger footing, pointing out the labour market is stabilising while business spending on equipment and software had risen significantly.

But it warns consumer spending remains constrained by high unemployment, and the housing market remains mired near lows.

The Fed does not think inflation is a problem as there is plenty of spare capacity.

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