Fed Leaves Rate at Record Low

The Federal Reserve today held a key interest rate at a record low and again pledged to keep it there for an "extended period" to foster the fragile economic recovery. The Fed says economic activity has "continued to pick up" and that the housing market also has grown stronger, a key ingredient to a sustained recovery.

It also said it will trim its purchases of debt from Fannie Mae and Freddie Mac to $175 billion, from $200 billion, because the debt is in short supply.