Fed Keeps Record Low Interest Rate

The lowering of the key federal funds interest rate, which banks charge each other, followed the Fed’s lowering the rate in December to the historic record low rate and holding it there at its previous meetings in January, March and most recently late April.

Prior to that, the Fed in October lowered the rate from 2% to 1.5%, and then to 1%.

(Click here for full statement from the Fed — Federal Reserve Web site.)