Fed Again Holds Interest Rate at Record Low

The Federal Reserve voted for the 14th straight time to keep a key U.S. interest rate at a record low “target range” of zero to 0.25%.

The Fed last held the federal funds interest rate in late June. It had first lowered rate to the zero range in December 2008. The federal funds rate is the rate that that banks charge each other.

The Fed’s statement said “the pace of economic recovery is likely to be more modest in the near term than had been anticipated.”

Fed governor Thomas Hoenig was the Federal Open Market Committee’s lone dissenter, the statement said.

Click here for the Fed’s full statement. (Federal Reserve Web site.)