Federal funds rate remains unchanged

WASHINGTON, Sept. 16 (UPI) -- The Federal Open Market Committee decided Tuesday to keep its target for the federal funds rate at 2 percent, U.S. officials said.

The FOMC policy statement noted that "economic growth appears to have slowed recently, partly reflecting a softening of household spending," a statement said.

"Over time, the substantial easing of monetary policy, combined with ongoing measures to foster market liquidity, should help to promote moderate economic growth," the statement said.

The committee said it believes the inflation outlook remains highly uncertain.

"The downside risks to growth and the upside risks to inflation are both of significant concern to the committee," the statement said. "The committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability."

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Christine M. Cumming; Elizabeth A. Duke; Richard W. Fisher; Donald L. Kohn; Randall S. Kroszner; Sandra Pianalto; Charles I. Plosser; Gary H. Stern; and Kevin M. Warsh. Cumming voted as the alternate for Timothy F. Geithner.