Fed Leaves Key Interest Rate Unchanged

[swag]

http://www.nytimes.com/2006/09/20/business/20cnd-fed.html

The Federal Reserve left its interest rates unchanged today, betting once again that inflation will remain contained as the economy cools.

After a two-year march of uninterrupted increases, the Fed has now held rates steady for two months running. As the economy heads into a period of what is expected to be much slower growth, the Federal Reserve’s chief policy goal under its chairman, Ben S. Bernanke, will be to engineer a “soft landing” — without run-ups in either inflation or unemployment.

In its statement today explaining its decision to keep rates stable, the Fed pointed to the slowing economy.

“The moderation in economic growth appears to be continuing, partly reflecting a cooling of the housing market.”

Most economists expected today’s decision; many believe the Fed will leave its benchmark short-term rates as they are through the end of the year or longer. And a growing number now predict that when it comes, the Fed’s next rate change will be downward, not upward, as the threat of inflation subsides.

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[Kelvin Mace]

1. Got to protect BusCo in November

[NVMojo]

2. now I think I know why thehousingbubbleblog.com crashed yesterday ...

had to keep everyone in the dark before this decision was made! One of the most popular housing bubble blogs too! What a threat!