FOMC Keeps Interest Rates at 0%

Acknowledging improvements in the larger economy, the ""Federal Open Market Committee"":http://www.federalreserve.gov/monetarypolicy/fomc.htm said Tuesday that it would keep a heel on zero interest rates and continue shepherding funds from mortgage-backed securities into agency mortgage-backed securities.

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The rate for federal funds remains between zero interest and .25 percent since December, and follows an earlier decision by the Fed to buy up $400 billion in Treasuries to ensure lower borrowing costs.

""Consistent with its statutory mandate, the

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Committee seeks to foster maximum employment and price stability,"" the FOMC said in a statement.

Chicago Fed chief Charles Evans dissented in a round of votes, citing his preferences for ""additional policy accommodation"" in lieu of needed changes from Europe.

""The Committee continues to expect a moderate pace of economic growth over coming quarters and consequently anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate,"" it added.

Europe remains a concern to the Fed. French President Nicholas Sarkozy and German Chancellor Angela Merkel made headlines for their roles in negotiating a stronger fiscal framework for the continent, which analysts fear may infect the broader global economy as debt-saddled nations near default.

Whither the Fed's actions into the future?

""The Committee will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools to promote a stronger economic recovery in a context of price stability,"" it said.