The US Federal Reserve has again sat on its hands and not moved interest rates at its first meeting of 2011 in Washington.

"The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period," the Fed said in its statement after the two day meeting.

Wall Street eased after the statement came out as many investors had been looking for a more upbeat statement.

That wording is the same as previous statements, which disappointed some commentators who believe the recent spate of better economic news could see the Fed giving an indication of a possible resumption of rate rises.

Rates were cut to their current record lows in December 2008 and it has been the continuing high unemployment which has kept the Fed from lifting rates and trying a second round of quantitative easing which seems to have sparked a rebound in share prices and commodities, but not in interest rates which have risen, rather than fallen.

But the Fed again said the economic recovery was "continuing" which was the same expression in the December meeting statement.

"Information received since the Federal Open Market Committee met in December confirms that the economic recovery is continuing, though at a rate that has been insufficient to bring about a significant improvement in labor market conditions.

"Growth in household spending picked up late last year, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit.

"Business spending on equipment and software is rising, while investment in nonresidential structures is still weak.

"Employers remain reluctant to add to payrolls. The housing sector continues to be depressed.

"Although commodity prices have risen, longer-term inflation expectations have remained stable, and measures of underlying inflation have been trending downward."

Fed chief Ben Bernanke will discuss the outlook at the National Press Club on February 3.

He is also due to testify before Congress on monetary policy later next month.

So more of the same of what we have been reading from the Fed for more than a wear.