Fed Stands Pat On Interest Rates

The Federal Reserve said the U.S. economy continues to strengthen, but that the slack left over from the recession is still so large that it expects interest rates to stay near zero for an "extended period."

The Fed also said the labor market is beginning to improve but still-high unemployment is keeping a lid on consumer spending.

After its two-day meeting, the Fed said it was in no rush to tighten policy, sticking to its forecast that economic slack, low inflation and stable inflation expectations should call for record-low rates for "an extended period."

Central bankers said there was no timeframe to "extended period."