U.S. Federal Reserve Keeps Interests Unchanged, will Buy U.S. Debt

» The U.S. Federal Reserve on Tuesday decided to keep its key interest rates at historical low of 0-0.25 percent, the level it has been since the end 2008, and said it will buy bonds issued by the U.S. government to stimulate economic recovery, Xinhua reported.

» In a statement after a one-day meeting, the Fed said the pace of the recovery “has slowed in recent months.” “Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth and tight credit,” the central bank said.

» “To help support the economic recovery in a context of price stability, the committee will keep constant the Federal Reserve’s holdings of securities at their current level by reinvesting principal payments from agency debt and agency mortgage-backed securities in long-term treasury securities,” the statement said.