The Federal Open Market Committee said it will keep interest rates low at least through 2014 but will not yet act on further stimulus to a slow-growing economy.
“The Committee will closely monitor incoming information on economic and financial developments and will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability,” according to the FOMC release Wednesday.
The target rate of funds will remain between 0% and 0.25% for the next two years, unchanged since the Fed lowered it coming out of the financial crisis in 2008.
The monetary policy action had only one dissenter Jeffrey Lacker, who disagreed with keeping the federal funds rate so low over the decided time period.
The central bank will continue a program to extend the average maturity of its holdings. In June, the Fed extended the so-called Operation Twist through the end of the year, by using principal payments from its holdings of agency debt and mortgage-backed securities to buy more agency mortgage bonds.
Committee members said household spending has been rising somewhat, but economic growth will remain only moderate “over the coming quarters and then pick up very gradually.”