Friday, June 29th, 2007
Fed Leaves Rates Unchanged, Says Inflation Outlook is Better
The Federal Reserve said the nation’s inflation outlook was improving and left short-term interest rates unchanged yesterday, but stopped short of saying that inflation had been vanquished.
At the conclusion of a two-day meeting, the central bank’s policymaking Federal Open Market Committee said it had left a benchmark interest rate unchanged at 5.25%. The Federal Funds Rate has been at that level for a year. Before that, U.S. borrowers had endured two years of steadily rising interest rates.
The Fed said inflation readings on so-called “core” inflation - which excludes volatile food and energy prices - had gotten “modestly” better in recent months. But the central bankers also said that “a sustained moderation in inflation pressures has yet to be convincingly demonstrated.”
However, in announcing the steady monetary policy, the Fed removed language present in previous statements that said inflationary pressures were “somewhat elevated.”
Profits Are Up 1,056.2% for This Wisconsin Company
Commodities are on a tear - and so is mining equipment. This "pick-and-shovel" company has already sold out two-thirds of its equipment for 2008. Australia, Canada and China are battling for orders. And the Street hasn't figured it out yet. All the details are in our Power Plays Report.
