WASHINGTON — The Federal Reserve pledged yesterday to keep a key interest rate at a record low for an "extended period," signaling that the weak economy remains dependent on government help to grow.

The Fed said economic activity has "continued to pick up" and that the housing market has strengthened — a key ingredient for a sustained recovery.

But Fed Chairman Ben Bernanke and his colleagues warned that rising joblessness and tight credit for many people and companies could restrain the rebound in the months ahead.

SERVICE SECTOR GROWTH RATE SLOWS

NEW YORK — The U.S. service sector grew for a second straight month in October, but at a slower pace than in September, as a broad economic recovery creeps along.

The Institute for Supply Management said yesterday that its service index dipped to 50.6 last month from 50.9. Any reading above 50 signals growth. Analysts polled by Thomson Reuters had expected a 51.5 for the index that tracks the country's hospitals, retailers, financial services companies and truckers.

But new orders, an augur of future activity, rose to 55.6, from 54.2 in September. Business activity also rose. Still, unemployment worsened. The employment tracker has contracted for 21 of the past 22 months.

N.Y. ACCUSES INTEL OF THREATS, KICKBACKS

NEW YORK — The legal challenges to Intel Corp.'s sales tactics mounted yesterday as New York's attorney general accused the world's biggest computer chip maker of using "illegal threats and collusion" to dominate the market.

In filing a federal antitrust lawsuit, Attorney General Andrew Cuomo accused Intel of using its market prowess to "rule with an iron fist."

Intel's chips act as the "brains" of 80 percent of the world's personal computers. Cuomo said Intel paid billions of dollars in kickbacks to computer manufacturers and retaliated against those that did too much business with Intel's competitors, namely Advanced Micro Devices Inc.

Intel spokesman, Chuck Mulloy, denied the latest charges, saying Intel's sales practices were legitimate.

GM MOVE LEAVES OPEL FUTURE UNCLEAR

BERLIN — General Motors Co.'s decision to scrap the sale of European subsidiary Opel raised new uncertainty yesterday over the unit's future, astonishing politicians in Germany and Russia, and prompting workers to plan walkouts in protest.

GM's unexpected decision to call off the sale to auto parts maker Magna International Inc. and Russian lender Sberbank was a startling end to months of haggling in which Chancellor Angela Merkel and other German leaders had strongly backed the deal.

Now German workers worry GM will make even more cuts to return Opel to profit than Magna would have. Still, the decision won a cautious welcome from union officials in Britain and Poland, where workers had feared possible cutbacks in a Magna takeover.