The Fed said economic activity has "continued to pick up” and that the housing market has also grown stronger, a key ingredient to a recovery.
But Fed Chairman Ben Bernanke and his colleagues warned that rising joblessness and hard-to-get-credit for many people and companies could restrain the rebound in the months ahead.
Economic activity is likely to remain weak for a time, they said.
Against that backdrop, the Fed kept the target range for its bank lending rate at zero to 0.25 percent.
And it made no major changes to a program to help drive down mortgage rates.
Commercial banks’ prime lending rate, used to peg rates on home equity loans, certain credit cards as well as other consumer loans, will stay at about 3.25 percent, the lowest in decades.
Still, some credit card rates have risen over the past several months. Part of that reflects rate bump-ups by lenders in response to escalating defaults on credit card loans. Lenders also pushed through increases before a new law clamping down on sudden rate hikes for credit card customers takes effect early next year.
Low rate helps, hurts The average rate nationwide on a variable-rate credit card is 11.5 percent, according to the Web site Bankrate.com. Lenders charge more and credit card customers pay rates higher than the prime because the debt they run up is more risky.
In normal times, the Fed controls only short-term rates. But after the financial crisis erupted, the Fed began buying longer-term Treasuries, keeping those rates lower than they’d otherwise be.
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