Federal Reserve, Interest Rate | featured news

To sustain the fragile economic rebound, the Federal Reserve is sure to leave interest rates at record lows and is likely to repeat a pledge to keep them there for a while.

The Federal Reserve sounded a more confident note Wednesday that the economy is strengthening but pledged to hold rates at record lows to make sure it gains traction.

The stock market continued its advance of the past month after the Fed said it would keep interest rates low to revive the economy.

Policymakers keep the rate at zero to 0.25% and vow to hold it low for an 'extended period.

Federal Reserve Chairman Ben Bernanke told Congress on Wednesday that a weak job market and low inflation would likely allow the central bank to keep interest rates at very low levels for a long time.

Bernanke detailed the Fed's strategy to tighten credit, indicating the rate paid to banks on excess reserves may for a time replace the fed funds rate as the main policy tool.

Focused on keeping the recovery going and driving down double-digit unemployment, the Federal Reserve is poised to leave interest rates at a record low.

Interest rates will remain unchanged until 2012 if the Fed sticks to the pattern set after the last two recessions, a Federal Reserve bank official said.

Gold futures barrel to a new record high above $1,100 an ounce, as news that the U.S. unemployment rate topped 10.2% in October boost expectations the Federal Reserve will keep interest rates near zero well into next year, pressuring the dollar.

The Federal Reserve signaled on Wednesday that it isn’t close to raising interest rates, saying the economy remains weak.