Fed leaves policies unchanged

WASHINGTON, Sept. 21 (UPI) -- The U.S. Federal Reserve said Tuesday it would stay the course with historically low bank-to-bank lending rates and a U.S. securities reinvestment program.

The Fed said the economy remains sluggish with gains in production and employment slowing in recent months. Consumer spending was on the rise "gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit," the Fed's Open Market Committee said.

Inflation remained subdued, the Fed said.

Last month the Fed said it would turn profits it made on its securities purchase back into making more purchases to keep the liquidity in financial system from retreating as its securities matured. The FOMC said Tuesday it would maintain that reinvestment program and keep its overnight lending rate at zero to 0.25 percent.