Breaking News - Federal Reserve keeps rates are is in spite of market strains
2008-09-16 19:00:24 (GMT) (Caymanmama.com - Business Top Stories News)Wall Street (CaymanMama.com) — In a breaking news report by the Associated Press, the Federal Reserve is upholding status quo in spite of the recent Wall Street setbacks this week.
According to a report from Washington on Tuesday, the Fed refused to change a key interest rate “saying that strains in financial markets have ‘increased significantly’ but the inflation outlook remains uncertain.” The news disappointed investors who kept high hopes that the Federal Reserve would make a move and prompt the central bank to continue cutting interest rates in the wake of heavy stress that recently emerged in the financial markets.
The central bank held its ground and noted that it aimed to keep its target for the federal funds rate (which is the interest that banks charge on overnight loans) untampered at 2%.
In a statement by the Federal Reserve, it was said that the recent strains on the financial markets have increased exponentially while labor markets and continued to weaken even further. The central bank added that it remained apprehensive about inflation and how it will continue to effect the economy.
“The downside risks to growth and the upside risks to inflation are both of significant concern to the committee,” the Fed officials said.
CaymanMama.com - Press Release Distribution Service
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