Fed stands pat on rates as data worsen

Disinflation, high unemployment, tumbling housing starts and European debt woes.

Acknowledging significant cracks in the economic recovery, Ben Bernanke and his U.S. Federal Reserve colleagues voted again Wednesday to keep priming the pump with record-low interest rates.

The decision to leave the central bank’s key interest rate ultra-low at zero to 0.25 per cent wasn’t unexpected.

But Mr. Bernanke put some fresh concerns on the table, including a surprising plunge in new home sales, pushing the likely date for an eventual rate hike until well into next year. (more)