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August 29, 2008 1:11:17 CDT

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Fed Stands Pat on Prime Rate

Posted Aug 7, 07 2:30 CDT in US,  Business 

(Newser) – The Fed today kept its benchmark interest rate steady at 5.25%, despite concerns that tightening credit will lead to an economic downturn. It's the ninth consecutive time the Fed has left the prime rate unchanged, the Times reports, and a sign that Ben Bernanke's top priority is curbing inflation rather than accommodating apprehensive investors.

Wall Street is more worried than the central bank about the economy following the housing market into a slump. The Fed acknowledges that credit conditions for consumers are poor, but its actions indicate it believes the economy will continue to expand at a moderate pace, with the help of rising incomes and employment, and a healthy global economy.

Source New York Times

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Traders work on the floor of the New York Stock Exchange, Monday, Aug. 6, 2007. Stocks fluctuated in early trading Monday following a sharp pullback Friday brought by concerns about the credit market...   (Associated Press)
Traders gather at a post on the floor of the New York Stock Exchange, Monday, Aug. 6, 2007. Stocks fluctuated in early trading Monday following a sharp pullback Friday brought by concerns about the credit...   (Associated Press)
Federal Reserve Board Chairman Ben Bernanke testifies on Capitol Hill in Washington, Thursday, July 19, 2007, as he delivers his semi-annual monetary report to the Senate Banking Committee. (AP Photo/Dennis...   (Associated Press)
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US economy  • Federal Reserve  • housing market  • Wall Street  • Ben Bernanke  • inflation  • interest rate  • investors  • central bank


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