http://www.guardian.co.uk/business/2011/jun/22/federal-reserve-holds-us-interest-rates-againThe US recovery is slower and weaker than expected, the Federal Reserve said, as it decided to hold interest rates at historic low levels and hinted that more government relief could come if the recovery stalls.
The decision came after a two-day meeting of the Federal Open Market Committee, which sets US interest rates. In a statement the FOMC said: "The slower pace of the recovery reflects in part factors that are likely to be temporary, including the damping effect of higher food and energy prices on consumer purchasing power and spending as well as supply chain disruptions associated with the tragic events in Japan."
Federal Reserve chairman Ben Bernanke will give a press conference this afternoon to discuss details of the committee's thinking and is expected to be questioned about the impact of the Geek financial crisis and his views on the fragile economic recovery.
The FOMC said it had a "dual mandate" to foster employment and keep prices stable. With unemployment high, the FOMC said it was leaving rates unchanged – "however, the committee expects the pace of recovery to pick up over coming quarters," it said. Inflation had risen recently, said the FOMC, but the committee expected it to fall with energy and commodity prices coming down.
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