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Article: Fed leaves funds rate unchanged at 2 percent
- Article from:
- AP Online
- Article date:
- August 5, 2008
- Author:
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The Federal Reserve, confronted with the perils of a slumping economy and rising inflation, has decided for a second straight meeting to leave interest rates unchanged.
The Fed announced Tuesday that it was keeping its target for the federal funds rate, the interest that banks charge each other, at 2 percent.
The decision has been widely expected by financial markets. The Fed is caught between what many economists believe is a recession and rising inflation pressures, triggered by this year's huge runup in energy prices.
The Fed decision means that commercial banks' prime lending rate, the benchmark for millions of consumer and business loans, will remain unchanged at ...