The Federal Reserve expressed some reservation about the strength of the U.S. economy and voted to hold policies unchanged despite recent signs that the recovery was gaining momentum, according to Reuters. The Federal Open Market Committee announced on Wednesday that its members had voted to leave the benchmark interest rate unchanged near zero, and that recent positive economic data are not yet sufficient to warrant a change to the $600 billion in asset-purchases planned for this year. The decision was unanimous.
The Fed report said pointed to the ongoing problem of high unemployment as a key reason for caution, “The economic recovery is continuing, though at a rate that has been insufficient to bring about a significant improvement in labor market conditions.” The Fed reiterated that it would keep interest rates ultra low for an extended period, stating, “Growth in household spending picked up late last year, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit.”
