Fed stays its course of rock-bottom rates; Officials more upbeat about economy than at January meeting
The Federal Reserve stood by its policy of keeping interest rates at rock-bottom levels for the foreseeable future at its policymaking meeting Tuesday even as central bank officials took a more positive tone about the economy.</br></br>The Federal Open Market Committee left its target for short-term interest rates near zero, where it has been for the past 15 months. Fed officials also repeated language from previous statements that rates are likely to remain "exceptionally low" for an "extended period," which they have said means at least six more months.</br></br>The Fed will also go forward with a plan to end its support for the mortgage market at the end of March. By then, the central bank will have completed the purchase of $1.25 trillion in mortgage-backed securities, a key factor in keeping interest rates low for those buying a house.</br></br>On balance, the Fed's assessment of the economy seemed slightly better than it had been at the last policy meeting, in late January. Recent data suggest that "the labor market is stabilizing," the statement accompanying the rate decision said. At the January meeting, the Fed had said that "deterioration in the labor market is abating."</br></br>The unemployment rate has edged down in recent months to 9.7 percent, and forecasters expect the nation to have added jobs in March.