国际英语新闻：U.S. Fed keeps interest rate unchanged

WASHINGTON, March 16 (Xinhua) -- The U.S. Federal Reserve announced Tuesday to keep the federal funds rate at historic low level of zero to 0.25 percent for "an extended period" to boost the economic recovery.

U.S. "economic activity has continued to strengthen and that the labor market is stabilizing," the Fed said in a statement after policymaking panel meeting.

Federal Open Market Committee (FOMC), the interest rate policy making body of the central bank, said that it will maintain the target range for the federal funds rate and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate "for an extended period."

Based on information received since the FOMC met in January, the Fed said that U.S. household spending is expanding at a moderate rate but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit.

Business spending on equipment and software has risen significantly. However, investment in nonresidential structures is declining, housing starts have been flat at a depressed level, and employers remain reluctant to add to payrolls.