Moscow - RIA Novosti
The U.S. Federal Reserve announced on Tuesday it would keep the federal funds ra te unchanged at 0.0-0.25 percent for at least two more years. "To promote the ongoing economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent," the Federal Reserve said in a statement. "The Committee currently anticipates that economic conditions - including low rates of resource utilization and a subdued outlook for inflation over the medium run - are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013," the statement added. The Federal Reserve has kept the federal funds rate at the minimum level for more than two years. In September 2007, the figure stood at 5.25 percent and began falling since then. In December 2008, it dropped from one percent to the current 0.0-0.25 percent and has remained unchanged. Global stocks have been tumbling since late Friday when S&P took the decision to cut the U.S. top rating by one notch to A-plus, over concerns about America's growing budget deficit.