The Federal Reserve has said the recession in the US is slowing, but the economy is likely to be weak. The central bank has not changed the interest rates and said that the rates would remain at its current low range of 0-0.25% for a long time.

The Fed Reserve has also said it would continue to purchase long-term government debt at its current level, to expand the supply of money. It expects the inflation to be under control for some time even though the prices of commodities and energy have gone up in recent times.

The Fed has said in a statement after a two-day meeting that information received since the Federal Open Market Committee (FOMC) meeting in April implies that the pace of economic recession is slowing.

The FOMC voted collectively to maintain its base rate, as was expected. The central bank announced in March, a $ 1.2 trillion programme of buying government debt to enhance lending and promote recovery of the economy. This policy is known as quantitative easing.

The Fed added that it would continue to assess the timing and overall amounts of purchases of securities in the backdrop of growing economic outlook and conditions in markets. Jim Awad of Zephyr Management, New York said that the Fed is pointing out the recovery is weak.