Fed Again Holds Interest Rate at Record Low

Federal Reserve governors voted for an eighth consecutive time Wednesday to keep a key U.S. interest rate at a record low “target range” of zero to 0.25%.

The Fed first lowered the key federal funds interest rate to that range last December.

“Businesses are still cutting back on fixed investment and staffing, though at a slower pace,” the Federal Open Market Committee said in a statement.

“Household spending appears to be expanding, but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth and tight credit,” the FOMC said.

Click here to view the full Fed statement. (Federal Reserve Web site.)