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October 12, 2008 3:40:04 PM CDT



Fed Likely to Hold Rates— for Now

Posted Jun 25, 08 6:17 AM CDT in US Business 

(Newser) – Despite fears that inflationary forces are revving, the Federal Reserve will probably hold the interbank federal funds rate at 2% today, hoping the bargain basement rate can help kick-start a stalled economy that’s been hamstrung by a tenacious housing slump and a credit crunch hangover, Reuters reports.

"Given the uncertainty about both upside and downside risks, the Fed is likely to stay on hold indefinitely," Deutsche Bank economists told clients.  

Source Reuters

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High gas prices posted at Shell, left, and Valero, right, gas station in San Bruno, Calif.   (AP Photo/Paul Sakuma)
Federal Reserve Chairman Ben Bernanke,   (AP Photo)
Federal Reserve Chairman Ben Bernanke.   (AP Photo/Josh Reynolds)
Federal Reserve Chairman Ben Bernanke.   (AP Photo/Josh Reynolds)
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