Fed warns on US economic growth

The US Federal Reserve voted to hold interest rates at record lows as it admitted Europe's debt problems could slow American economic growth.

The Federal Open Markets Committee (FOMC) of America's central bank voted 9-1 in favour of maintaining its federal funds rate at a range of 0%-0.25% for the 13th meeting in a row. Chaired by Ben Bernanke, the central bank for the first time acknowledged the impact of problems in Greece and Spain and other eurozone nations struggling with high debt levels, reports the Telegraph. "Financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad," the FOMC statement warned. Until now the rate-setting committee had consistently said...