WASHINGTON (AP) — The Federal Reserve, acknowledging the economy has continued to deteriorate, signalled yesterday that it will keep using unconventional tools to cushion the fallout, including keeping a key interest rate at a record low for quite "some time."

Specifically, the Fed said it is now "prepared" to buy longer-term Treasury securities if the circumstances warrant such action. That put a little more forward movement on this approach. At its December meeting, the Fed said it was merely evaluating that option.

The Fed agreed — with one dissent — to keep the targeted range for the federal funds rate between zero and 0.25 percent. The funds rate is the interest banks charge each other on overnight loans. Economists predict the Fed will leave rates at that range through the rest of this year.

Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, was the sole dissenter. He wanted the Fed to move forward on buying Treasury securities.

"The economy has weakened further," the Fed said. To provide support, it said it would keep rates at rock bottom levels for "some time".