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FED LEAVES KEY INTEREST RATE AT 1 PERCENT
| The Federal Reserve yesterday kept its target for the federal funds rate unchanged at 1 percent. The Fed "continues to believe that an accommodative stance of monetary policy, coupled with robust underlying growth in productivity, is providing important ongoing support to economic activity." The Fed said spending is firming and the labor market appears to be stabilizing, while business pricing power and increases in core consumer prices remain muted. The risk of inflation becoming undesirably low remains the predominant concern for the foreseeable future, the Fed said. "In these circumstances, the Committee believes that policy accommodation can be maintained for a considerable period." |