Federal Reserve Holds Benchmark Interest Rate at 5.25%
Click here for the full statement from the Federal Reserve.
For a sixth straight time, the Federal Reserve on Wednesday voted to keep the benchmark U.S. interest rate at 5.25%.The vote to hold the federal funds rate unchanged was unanimous.The Fed last held the rate steady at its Jan. 30-31 meeting and has not raised the bechmark rate that banks charge each other since June, which was the 17th straight meeting at which it boosted the rate by a quarter-point.“Recent readings on core inflation have been somewhat elevated,” the Fed said in a statement. “Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters.”By Transport Topics
For a sixth straight time, the Federal Reserve on Wednesday voted to keep the benchmark U.S. interest rate at 5.25%.The vote to hold the federal funds rate unchanged was unanimous.The Fed last held the rate steady at its Jan. 30-31 meeting and has not raised the bechmark rate that banks charge each other since June, which was the 17th straight meeting at which it boosted the rate by a quarter-point.“Recent readings on core inflation have been somewhat elevated,” the Fed said in a statement. “Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters.”By Transport Topics
Full Statement from the Federal Reserve
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5.25%.Recent indicators have been mixed and the adjustment in the housing sector is ongoing. Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters. Recent readings on core inflation have been somewhat elevated. Although inflation pressures seem likely to moderate over time, the high level of resource utilization has the potential to sustain those pressures.In these circumstances, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Cathy E. Minehan; Frederic S. Mishkin; Michael H. Moskow; William Poole; and Kevin M. Warsh.
