The Federal Reserve announced it will keep the federal funds interest rate at zero to 0.25 percent, a record low
, according to reports by Bloomberg. The Federal Open Market Committee said it expects to keep the rate at low levels for an extended period.

The Committee said financial conditions have become "less supportive of economic growth on balance, largely reflecting developments abroad." This may refer to Europe's debt crisis, Bloomberg says.

"Household spending is increasing but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit," the Committee said. "Business spending on equipment and software has risen significantly; however, investment in nonresidential structures continues to be weak and employers remain reluctant to add to payrolls. Housing starts remain at a depressed level."