Fed pledges to keep interest rates at record low

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The Federal Reserve held benchmark rates near zero Tuesday and renewed a promise to keep them exceptionally low for an extended period while pointing to increased momentum in the economy’s recovery.

The central bank’s nod to a firmer rebound from the deepest recession in decades hints that it is moving closer to dropping its promise to hold borrowing costs at rock bottom levels, suggesting rate hikes could come within several months.

For a second consecutive meeting, Kansas City Federal Reserve Bank President Thomas Hoenig dissented, saying the commitment to keep rates exceptionally low for an extended period was no longer warranted.

Full story: Fed, as Expected, Renews Vow To Keep Interest Rates Low – Reuters with CNBC