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Fed holds interest rates near zero

Jerry Kronenberg
Nov 05, 2009 (Boston Herald - McClatchy-Tribune Information Services via COMTEX) --

The Federal Reserve is keeping short-term interest rates near zero percent, but is scaling back an unprecedented $1.45 trillion intervention into mortgage markets as the U.S. economy slowly heals.

"Although economic activity is likely to remain weak for a time, the (Fed) anticipates that policy actions, (government) stimulus and market forces will (eventually) support a strengthening of economic growth," the Fed's interest-rate committee said yesterday in a statement issued after concluding a two-day meeting.

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