Fed keeps US interest rates steady at 2 per cent
The Federal Reserve Wednesday halted a
string of dramatic interest rate cuts designed to boost a sagging US economy, keeping its benchmark rate steady at 2 per cent.
The US central bank had lowered its federal funds rate by 3.25 percentage points since September, but a statement from the Fed's monetary policy board sounded warnings about increasing risks of inflation.
"Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased," the Federal Open Market Committee statement said.
The 9-1 decision by the committee comes the day before a final US growth figures for the first quarter are released by the government. Previous estimates showed US gross domestic product expanded 0.6 per cent in the quarter, dpa reported.