Federal Reserve to keep rates close to zero until 2013

The Federal Reserve has reiterated its plans to keep rates close to zero until mid-2013, saying it "seeks to foster maximum employment and price stability".

Consequently, the Committee will maintain its target range for the federal funds rate between 0 and 1/4%, saying it expects that economic conditions are unlikely to warrant exceptionally low levels for the federal funds rate between now and mid-2013.

"The Committee continues to expect a moderate pace of economic growth over coming quarters and consequently anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate," the Federal Reserve said in a statement.

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"To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee decided today to continue its program to extend the average maturity of its holdings of securities as announced in September."

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