Fed Again Leaves Funds Rate at 2%

Decision aimed at balancing inflation, economic worries
By Newser Editors and Wire Services
Posted Aug 5, 2008 2:07 PM CDT
Federal Reserve Board Chairman Ben Bernanke reports on the economy as he appears before the Senate Banking Committee on Capitol Hill in Washington, Tuesday, July 15, 2008.    (AP Photo/Susan Walsh)
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(Newser) – The Federal Reserve declared today that it was keeping its target for the federal funds rate, the interest that banks charge each other, at 2%. Confronted with the perils of a slumping US economy and rising inflation, the Fed decided for a second consecutive meeting to leave interest rates unchanged. The decision to leave rates alone had been widely expected by financial markets.