Fed wary of economic clouds, but leaves interest rates unchanged for now
(Worthy News) – The Federal Reserve is holding its benchmark interest rate steady, although policymakers indicate a willingness to loosen the monetary reins if U.S. economic growth sags.
While the economy remains strong, “uncertainties about this outlook have increased,” the Fed’s rate-setting body said in a statement released Wednesday afternoon after two days of deliberations. “In light of these uncertainties and muted inflation pressures, the Committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion.”
The current Federal funds rate is set in a range between 2.25% and 2.5%. When the Fed adjusts that rate, it changes the private borrowing costs for everything from mortgages and credit cards to home equity lines of credit. Lowering the rate can help stimulate the economy as well as increase inflation, which remains shy of the Fed’s target of 2% a year. [ Source: CBS News (Read More…) ]