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Byline: Robert Gavin
Aug. 13--The Federal Reserve yesterday left its key short-term interest rate unchanged, pointing to an improving economy while signaling it planned to keep interest rates near historically low levels for a "considerable period" as a hedge against deflation.
The unanimous decision to hold the benchmark rate at its 45-year-low of 1 percent was widely expected, with much of yesterday's focus falling on the statement that policy makers release after their meetings and which analysts read closely as a signal of what to expect from the Fed in coming months. Policy makers, as they did after the last rate cut in June, reiterated that the recovery continues to show signs of gaining strength, but because of lingering weak spots, particularly in…