Fed pledges to use all tools to help economy

The Federal Reserve, acknowledging the economy has continued to deteriorate, signaled today that it will keep using unconventional tools to cushion the fallout, including keeping a key interest rate at a record low for quite “some time.” The Fed agreed—with one dissent—to keep the targeted range for the federal funds rate between zero and 0.25%. The funds rate is the interest banks charge each other on overnight loans. Economists predict the Fed will leave rates at that range through the rest of this year. “The economy has weakened further,” the Fed said. To provide support, it said it would keep rates at rock bottom levels for “some time.” Having taken the unprecedented step of slashing its key rate to record lows at its previous meeting in December, the central bank pledged anew to look at other unconventional ways to revive the economy. Specifically, the Fed said it is now “prepared” to buy longer-term Treasury securities if the circumstances warrant such action.