Saying that the "pace of recovery and output has slowed," the Federal Reserve's Open Market Committee announced today it would leave interest rates unchanged.
The committee kept the target rate for federal funds at 0 to 0.25% and noted that economic conditions were such that the rates would likely stay low for the immediate future.
It also said that inflation levels were "somewhat below those the committee judges most consistent, over the longer run, with its mandate to promote maximum employment and price stability." And it said it was "prepared to provide additional accommodation if needed" to back up the recovery.
The vote was 8-1 with Kansas City Federal Reserve Bank President Thomas Hoenig as the lone dissenter. According to the committee statement he contends that keeping the federal funds rate low threatens to undermine stable growth.
