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US fed funds rate steady after FOMC statement

US economic growth braked sharply in the fourth quarter as businesses stepped up efforts to reduce an inventory glut and a strong dollar and tepid global demand weighed on exports.

[NEW YORK] The US interest rate that the Federal Reserve targets held at 0.38 per cent for a fourth consecutive day on Wednesday after the central bank as expected left policy rate unchanged, according to Fed data released on Thursday.

The average, or effective, fed funds rate, traded in a range of 0.33 per cent to 0.56 per cent for a third consecutive day.

On Wednesday, the Federal Open Market Committee, the Fed's policy setting group, to leave its target range on the fed funds rate at 0.25-0.50 per cent after raising it from zero to 0.25 per cent in December.