Fed keeps interest rates to near zero
NEW YORK - Interest rates are set to stay near zero for the time being, though the Federal Reserve stands ready to take action if signs of inflation begin to mount, top US central bank officials said.
William Dudley, head of the New York Federal Reserve Bank, offered a relatively measured outlook for the economy, arguing that while a sustainable US economic recovery appears to be under way, growth is likely to remain subdued.
"Given the headwinds created by the collapse of the US real estate market and its consequent damage to the financial system and household balance sheets, it seems unlikely that the recovery will be as strong as we would desire," he told students and faculty at Washington and Lee University in Lexington, Virginia, on Thursday.
