Washington, Aug 13 (DPA) The US Federal Reserve kept interest rates at near 0 percent Wednesday and showed no signs of changing course as it said the US may be emerging from a 20-month recession.

The central bank in a statement said US economic activity was 'levelling out' and the financial sector had 'continued to improve' in the last few weeks. Household spending, which accounts for about two-thirds of economic output, was also 'stabilizing.'

The Fed has kept its benchmark federal funds rate at a 0-0.25 percent range since December and repeated that it would stay the course 'for an extended period' as the economy begins to recover.

'The committee will continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook and conditions in financial markets,' the 10-member Federal Open Market Committee said at the end of a two-day meeting.