|
|
U.S. Fed leaves key interest rate unchanged at 5.25 percent (2) |
 |
+ |
- |
08:34, August 08, 2007 |
"Readings on core inflation have improved modestly in recent months," said Fed Chairman Ben Bernanke and his colleagues, adding "a sustained moderation in inflation pressures has yet to be convincingly demonstrated."
Moreover, "the high level of resource utilization has the potential to sustain those pressures," warned the policy-makers, who voted unanimously to keep the interest rate at 5.25 percent.
"Although the downside risks to growth have increased somewhat, the Committee''s predominant policy concern remains the risk that inflation will fail to moderate as expected," said the statement.
"Future policy adjustments will depend on the outlook for both inflation and economic growth, as implied by incoming information, " it added.
The decision was widely expected by economists as the economy at the moment is sending mixed signals.
"Core" prices, an inflation gauge closely watched by the Federal Reserve, rose at a 1.4 percent rate in the second quarter. That was down from the 2.4 percent pace in the first quarter and was the smallest gain in four years.
The housing slump, which started last year as interest rates were rising, was still a big drag to the economic growth.
[1] [2] [3]
|
|
|
Comment
Tell A Friend
Print Format
Save Article