Wednesday, August 6, 2008

Fed Shift Indicates Main Rate Will Stay at 2% to Revive Economy

(Bloomberg)
Federal Reserve policy makers indicated that interest rates won't budge until next year as they wait for the credit crisis to abate and inflation to ease. The central bank, which left its benchmark rate at 2 percent yesterday, said ``downside risks to growth remain,'' dropping a reference in June's statement to ``diminished'' dangers. The Fed also said price increases are of ``significant concern.''

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