Federal Reserve Leaves Interest Rates Unchanged at 5.25 Percent
The Federal Reserve Board of Governors finished its two-day meeting today and issued the following statement (see the Fed's website for the full text): "Economic growth appears to have been moderate during the first half of this year, despite the ongoing adjustment in the housing sector. The economy seems likely to continue to expand at a moderate pace over coming quarters.... [T]he 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." The Fed has left the bellwether Fed funds rate rates unchanged for 7 consecutive meetings (1 year exactly), and is expected to leave rates unchanged for the remainder of 2007.
