Fed keeps near-zero rates, sees gradual rebound

0 Comments | AFP, June, 2009

WASHINGTON (AFP) — The Federal Reserve on Wednesday held its base rate near zero, as it predicted a "gradual resumption of sustainable economic growth" without inflationary pressures.

Concluding a two-day meeting, the policymaking Federal Open Market Committee, as widely expected, left the base federal funds rate in a range of zero to 0.25 percent.

The FOMC said the economy remained weak but was showing signs of improvement.

"Information received since the Federal Open Market Committee met in April suggests that the pace of economic contraction is slowing," the panel said.

"Although economic activity is likely to remain weak for a time, the Committee continues to anticipate that policy actions to stabilize financial markets and institutions, fiscal and...