Fed to maintain super low interest rate policy

The US Federal Reserve says it will keep its virtual zero interest rate and other policies unchanged until mid-2013.

The Fed ended a 2-day Open Market Committee meeting on Wednesday after endorsing the monetary policy action with a majority of votes.

A statement released after the meeting says economic growth strengthened somewhat in the 3rd quarter but that overall labor market conditions continue to be weak.

The statement also points out that there are significant downside risks to the economic outlook, including strains in global financial markets.

The remark reflects the Fed's concern over an impact of expanding credit fears in Europe on the US economy.

The statement says as a measure to foster economic growth, the Fed will continue its program to swap short-term government bonds held by it with long-term ones, in an effort to lower long-term interest rates.

Chicago Fed President Charles Evans voted against the policy plan, calling for additional easy-money measures.

Thursday, November 03, 2011 06:22 +0900 (JST)