Low US interest rate likely to remain

The US Federal Reserve signalled today that it will keep using unconventional tools to cushion the fall-out, including keeping a key interest rate at a record low for quite "some time".

Specifically, the Fed said it is "prepared" to buy longer-term Treasury securities if the circumstances warrant such action. At its December meeting, the Fed said it was merely evaluating that option. Such a move could help drive down mortgage rates and provide help to the stricken housing market, economists said.