Fed Stays The Course on Interest Rates

Washington, DC, June 22, 2011 -- The Federal Reserve said it will keep short term interest rates near zero for at least several more months.

In addition, the Fed gave no indication that it plans a new round of stimulus.

After a meeting of the Fed's decision-making body, officials said they will end the purchase of $600 billion of U.S. Treasurys as planned on June 30.

The Fed said the recovery is continuing at a moderate pace, though more slowly than previously expected.

"In particular, consumers' purchasing power has been damped by higher food and energy prices, and the aftermath of the tragic earthquake and tsunami in Japan has been associated with disruption in global supply chains," Chairman Ben Bernanke said at a press conference.

In updated forecasts, Fed officials expect the economy to expand at a rate of around 2.7% to 2.9% this year and 3.3% to 3.7% in 2012.