2 Aug 2012

US rate held by Fed

12:00 pm on 2 August 2012

The US Federal Reserve has kept interest rates on hold at near zero, after saying the American economic recovery has lost momentum so far this year.

But the Fed stopped short of injecting more money into the economy even as it signaled that further bond buys could be in store.

Analysts say the economy's limited ability to create more jobs will prompt the Fed to offer more measures to stimulate activity next month. Unemployment is 8.2%.