Fed Leaves Funds Rate Unchanged at 2 Percent

Описание: BusinessFed Leaves Funds Rate Unchanged at 2 PercentFed Leaves Funds Rate Unchanged at 2 PercentThe Associated PressThe Federal Reserve, confronted with the perils of a slumping economy and rising inflation, has decided for a second straight meeting to leave interest rates unchanged. (Aug. 5)The Federal Reserve, confronted with the perils of a slumping economy and rising inflation, has decided to leave interest rates unchanged for a second straight meeting. The federal funds rate, the interest that banks charge each other, will remain at 2 percent. The prime lending rate - the benchmark for millions of consumer and business loans - will also remain unchanged, at 5 percent. The decision has been widely expected by financial markets. Shortly after the announcement, the Dow Jones industrials were more than 200 points. The Fed statement indicated that the challenges facing the economy are far from over. [Notes:Graphic of statment: "tight credit conditions, the ongoing housing contraction and elevated energy prices are likely to weigh on economic growth over the next few quarters."]The Fed is currently caught between the opposing forces of what many economists believe is a recession and rising inflation pressures, triggered by this year's huge runup in energy prices.The Fed said it expected a moderation in price pressures later this year and next year but cautioned that "the inflation outlook remains highly uncertain." ___ ___, The Associated Press.(****END****)