Fed signals plan to keep key rate at record low - WRCBtv.com | Chattanooga News, Weather & Sports

Fed signals plan to keep key rate at record low

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WASHINGTON (AP) - The Federal Reserve is signaling that it plans to keep a key interest rate at a record low for a considerable period because a broad range of U.S. economic measures remain subpar.

The Fed says it plans to keep its benchmark rate near zero as long as inflation remains under control, until it sees consistent gains in wage growth, long-term unemployment and other gauges of the job market.

The Fed retained language signaling plans to keep short-term rates low "for a considerable time" after it ends its monthly bond purchases at its next meeting in October.

In a statement ending its latest policy meeting, the Fed says it will make another $10 billion cut in the pace of its purchases, which have been intended to keep long-term borrowing rates low.

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