MercoPress. South Atlantic News Agency

US federal funds rate remain unchanged at 1%.

The United States Federal Reserve Open Market Committee decided this Tuesday to keep its target for the federal funds rate at 1% and anticipated that “policy accommodation can be maintained for a considerable period”.

In the official release following the meeting FOMC said that the "Committee continues to believe that an accommodative stance of monetary policy, coupled with robust underlying growth in productivity, is providing important ongoing support to economic activity. The evidence accumulated over the inter-meeting period confirms that spending is firming, and the labour market appears to be stabilizing. Business pricing power and increases in core consumer prices remain muted".

The perception of the FOMC is that "the upside and downside risks to the attainment of sustainable growth for the next few quarters are roughly equal. In contrast, the probability, though minor, of an unwelcome fall in inflation exceeds that of a rise in inflation from its already low level. The Committee judges that, on balance, the risk of inflation becoming undesirably low remains the predominant concern for the foreseeable future. In these circumstances, the Committee believes that policy accommodation can be maintained for a considerable period".

Voting for the FOMC monetary policy action were: Alan Greenspan, Chairman; Ben S. Bernanke; Susan S. Bies; J. Alfred Broaddus, Jr.; Roger W. Ferguson, Jr.; Edward M. Gramlich; Jack Guynn; Donald L. Kohn; Michael H. Moskow; Mark W. Olson; Robert T. Parry; and Jamie B. Stewart, Jr.