Us Federal Reserve Holding Its Nerve

Birmingham PostMay 15, 2007

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Summary


The US Federal Reserve held its benchmark interest rate unchanged at 5.25 per cent last night, as expected, but signalled that it is still worried that inflation will fail to moderate.

The interest-setting Federal Open Market Committee said that core inflation remained somewhat elevated, but added that inflation pressures were likely to moderate over time. "The committee's predominant policy concern remains the risk that inflation will fail to moderate as expected."

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Us Federal Reserve Holding Its Nerve

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