US Fed maintains asset-buying program

WASHINGTON, D.C.: The US Federal Reserve left unchanged near-zero interest rates and its massive bond-buying program on Wednesday (Thursday in Manila), citing modest growth in the world’s largest economy.

Wrapping up a two-day policy meeting, the Federal Open Market Committee (FOMC) said that it would continue to buy $85 billion in bonds per month to help tamp down longer-term interest rates that have been supporting the economy, and especially the housing market recovery. The bond-purchase program has filled a gap in the Fed’s toolkit after the central bank slashed its key federal funds rate to zero to 0.25 percent in December 2008 and held it there.