Posted at 9:22 a.m., Wednesday, January 31, 2007
Federal Reserve leaves interest rates unchanged
Associated Press
The Federal Reserve, faced with a strongly rebounding economy, left interest rates unchanged on Wednesday while repeating concerns about inflation.The central bank voted to leave the federal funds rate, the interest that banks charge each other, at 5.25 percent, where it has been since last June.
That decision had been widely expected given an economy that is exhibiting better-than-expected growth. While the Fed had been expected to start cutting rates later this year, economists are now worried that the central bank may feel the need to resume raising rates for fear that inflation pressures will not keep easing.
The rate action was supported by a unanimous 11-0 vote of the Federal Open Market Committee, the panel of Fed board members in Washington and regional bank presidents who meet eight times a year to set interest rates.
