The Federal Open Market Committee voted yesterday to keep the target range for the federal funds rate at 0% to 0.25% and also said the funds rate is likely to stay "exceptionally low" for an "extended period."

Economic activity and the housing market have picked up and "deterioration in the labor market is abating," the FOMC said in a statement.

Household spending also seems to be expanding moderately, though it is "constrained by a weak labor market, modest income growth, lower housing wealth, and tight credit."

The FOMC "continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period," the statement said.

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