Fed Keeps Rates Steady

The Federal Reserve just said that it has left its key interest unchanged, noting that the economy has continued to contract but that the outlook seems to be improving.

The federal funds rate will hold at 0 to .25 percent.

Highlights from the Fed board's statement:

* "Household spending has shown signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit."

* "In light of increasing economic slack here and abroad, the Committee expects that inflation will remain subdued. Moreover, the Committee sees some risk that inflation could persist for a time below rates that best foster economic growth and price stability in the longer term."

* "The Committee will continue to carefully monitor the size and composition of the Federal Reserve's balance sheet in light of financial and economic developments."

-- Michael Rosenwald