US interest rates on hold for 'extended period'-Fed

The US Federal Reserve expects to hold its main interest rate at a near zero level for an "extended period".

It said subdued inflation and other factors are likely to keep rates at their historic lows, according to the BBC. The Fed has kept its short term interest rates in the zero to 0.25% range since December 2008. Thomas Hoenig was the only member of the 10-man Fed board to oppose the "extended period" pledge. He fears keeping rates too low for too long could lead to a return of excessive risk-taking by investors and speculative bubbles. However, despite keeping rates low to boost the economy, the Fed was upbeat about growth. It noted consumer spending had "picked up," and there ...