Fed Stands Pat on Prime Rate

Central bank's top priority remains curbing inflation
By Caroline Zimmerman,  Newser User
Posted Aug 7, 2007 2:30 PM CDT
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)
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(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.