The Federal Reserve announced today that it would maintain the target range for the federal funds rate at 0 to 1/4 percent. The decision comes as the central bank continues to grapple with the ongoing economic downturn.

In a statement, the Fed noted that economic activity has been showing signs of stabilization, but that the labor market remains weak and inflation is subdued. The Committee anticipates that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

The Fed also reiterated its commitment to purchasing agency debt and mortgage-backed securities to help lower borrowing costs and support the housing market. The size and timing of these purchases will be regularly evaluated in light of evolving market conditions.

The decision to hold rates steady was widely expected by economists. The Fed’s next meeting is scheduled for August.