Don't miss

Replay


LATEST SHOWS

ENCORE!

The Little Prince on the big screen

Read more

EYE ON AFRICA

At least 3 dead in grenade attack in Bujumbura

Read more

MEDIAWATCH

Inequality, sexism and the movie industry

Read more

ENCORE!

Sienna Miller on motherhood, her new movies and Cannes glamour

Read more

THE WORLD THIS WEEK

After the Fall of Ramadi, Palmyra: Did the West Underestimate the Jihadists?

Read more

THE WORLD THIS WEEK

Migrants and Immigrants: A Global Crisis

Read more

FRANCE IN FOCUS

Behind the scenes of French gastronomy

Read more

EYE ON AFRICA

Protests continue in Burundi as calls mount for election delay

Read more

EYE ON AFRICA

Burundi: Nkurunziza delays parliamentary polls as clashes continue

Read more

Fed holds US interest rates steady

Latest update : 2008-06-26

The US Federal Reserve left the benchmark federal funds rate unchanged at 2 percent maintaining that inflation risks were higher while the risks to economic growth had eased.

The Federal Reserve Wednesday left unchanged its federal funds rate at 2.0 percent, saying the risks of a sharp economic downturn have eased while inflation risks are higher.
  
"Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased," the Federal Open Market Committee said after a 9-1 vote.
  
"The Committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability."
  
Dallas Fed president Richard Fisher dissented, calling instead for an increase in the federal funds rate at the meeting.
  
Although the statement offered no clear indication of the central bank's next move, some economists have argued the Fed is laying the groundwork for a hike in interest rates, possibly later this year. Others say Fed chairman Ben Bernanke is simply talking tough to keep a lid on inflation expectations.
  
"Recent information indicates that overall economic activity continues to expand, partly reflecting some firming in household spending," the FOMC statement said.
  
"However, labor markets have softened further and financial markets remain under considerable stress. Tight credit conditions, the ongoing housing contraction, and the rise in energy prices are likely to weigh on economic growth over the next few quarters."
  
The panel said it "expects inflation to moderate later this year and next year. However, in light of the continued increases in the prices of energy and some other commodities and the elevated state of some indicators of inflation expectations, uncertainty about the inflation outlook remains high."
  

Date created : 2008-06-25

COMMENT(S)