Zero interests rate will remain as the US economic is still weak

 As it was expected by many observers and analysts the Federal Reserve announced it would further keep the interest rates in a range of zero to 0.25 percent. Closing its two day meeting the central bank said that the US economy shows signs of coming recovery but it is still committed to keeping borrowing costs near zero citing weak activity and absence of inflationary risks.

In its official statement the central bank said that the U.S. economy had "continued to pick up" since its last meeting in September, but it expressed concern the recovery was likely to be muted.

"Household spending appears to be expanding but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit," it said. While still emphasizing risks, the Fed was a bit more upbeat than in September, when it had simply said spending was "stabilizing."

By citing "low rates of resource utilization, subdued inflation trends, and stable inflation expectations," analysts said the Fed was providing a road map to follow to determine when it may finally begin to tighten policy.

Additionally the Fed also said that it would limit its purchasing of debt issued by federal housing agencies only to about $175 billion. Previously it planned to buy up to $200 billion to help keep mortgage costs low.

"If there is any surprise, it sounds like there is not even any hint that they are going to raise rates soon," said Robert MacIntosh, chief economist at Eaton Vance Corp in Boston. "We've got a number of Fed meetings to go before we will get any kind of increase."

Top Fed officials, including Chairman Ben Bernanke, have said the U.S. recession has left a legacy of high unemployment and idle factories that should keep price pressures in check.