U.S. Federal Reserve leaves key interest rate unchanged for fifth straight meeting
Canadian PressPublished: Wednesday, January 31, 2007
"WASHINGTON (AP) - The U.S. Federal Reserve has left a key interest rate unchanged for a fifth straight meeting while repeating worries about inflation."
"The central bank voted to leave the federal funds rate, the interest that banks charge each other, at 5.25 per cent, where it has been since last June. "
"While the Fed had been expected to start cutting rates later this year, economists are now worried that the central bank may feel the need to resume raising rates for fear that inflation pressures will not keep easing. "
"The rate action was supported by a unanimous 11-0 vote of the Federal Open Market Committee, the panel of Fed board members in Washington and regional bank presidents who meet eight times a year to set interest rates. " Full Article.