Fed May Hold Rates Steady
- Jun 25, 2008
Washington, D.C.–The Federal Reserve is expected to keep interest rates unchanged at its meeting today, ABC News said Wednesday.The Fed has cut its Fed Funds interest rate since September several times to revitalize the economy, which has struggled with a weak housing market and credit issues.Currently, rates are at 2 percent; in September, they stood at 5.25 percent. However, lowering rates is a tricky balance. Keeping rates low can spark growth; keeping them too low puts inflation at risk.Therefore, the Fed statement–due Wednesday afternoon–will most likely be a cautiously worded statement, ABC said.