FOMC leaves Fed Funds Rate alone…mortgage rates rise
The FOMC remains concerned about inflation so the mortgage market reacted today by raising short term rates slightly. Your auto loan and home equity line rate remains the same.
Read the Fed statement
Central bank policy-makers hold rates steady at
5.25 percent for the seventh straight time.
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.
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| Federal Reserve Chairman Ben Bernanke |
Economic growth slowed in the first part of this year and the adjustment in the housing sector is ongoing. Nevertheless, the economy seems likely to expand at a moderate pace over coming quarters.
Core inflation remains somewhat elevated. Although inflation pressures seem likely to moderate over time, the high level of resource utilization has the potential to sustain those pressures.
In these circumstances, the Committee’s predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.
Voting for the FOMC monetary policy action were: Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Cathy E. Minehan; Frederic S. Mishkin; Michael H. Moskow; William Poole; and Kevin M. Warsh.
