Fed keeps rates unchanged

The US Federal Reserve said Wednesday it would keep reducing the amount of cash it injects into bond markets, while maintaining that any increase in near-zero interest rates would not happen for a "considerable time."

The central bank also gently cut its forecast for US growth, citing a "significant" amount of slack in the labor market. It signalled that it was in no great hurry to raise interest rates as many economists and traders had expected.

The US economy has fared well in recent months, with the unemployment rate falling back down to 6.1 percent in August. Job creation and wage gains, however, have logged only slight progress.

"Economic activity is expanding at a moderate pace," the bank #link:http://www.federalreserve.gov/newsevents/press/monetary/20140917a.htm:said in a statement#. "However, the unemployment rate is little changed and a range of labor market indicators suggests that there remains significant underutilization of labor resources."

The Fed does not plan to raise interest rates again until after its bond-buying stimulus program wraps up. In a statement, the bank announced a further $10 billion (7.7 billion euros) cut to its monthly bond purchases.

cjc/sri (Reuters, AFP, dpa)