Fed detects a pulse in the US economy, keeps rate unchanged

The Federal Reserve says the U.S. economy continues to contract, although at "somewhat slower" pace.

"Household spending has shown signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit," the Federal Open Market Committee (FOMC) said in a statement today.

The Federal Funds target rate remained unchanged at zero to one-quarter of one percent.