WASHINGTONS, D.C., Dec. 13 (UPI) — The U.S. Federal Reserve said Tuesday it would keep its federal fund rate and its reinvestment policies intact.
The decision to keep the lending rate unchanged was widely expected as the Fed has said it would likely keep its rate at historic lows through the middle of 2013.
“Indicators point to some improvement in overall labor market conditions” since November, the Fed said, “but fixed business investment appears to be increasing less rapidly and the housing sector remains depressed.”
In addition, the elevated rate of inflation from earlier this year “has moderated … and longer-term inflation expectations have remained stable,” the Fed said.
Nine members of the Fed’s Open Market Committee voted to keep policies unchanged, while Charles Evans, president of the Reserve Bank of Chicago voted against the action, as he favored “additional policy accommodation at this time,” the Fed said in a statement.