Originally posted by the Voice of America.
Voice of America content is produced by the Voice of America,
a United States federal government-sponsored entity, and is in
the public domain.


                 Fed Holds Interest Rates Steady at Record Low

   by Jim Randle

   Top officials of the U.S. central bank are holding the key interest
   rate steady at a record low, near zero, where it has been since 2008.

   The Federal Reserve wrapped up two days of meetings Wednesday, saying
   U.S. unemployment remains low, but the pace of job creation has slowed.

   The Fed tries to steer the economy toward full employment and stable
   prices.

   That is why the Fed slashed interest rates during the financial crisis
   when unemployment rose to 10 percent.  The idea was to boost economic
   growth by making it easier for businesses to borrow money to build new
   facilities and hire people, and to make it less expensive for families
   to afford to buy homes.

   Now that unemployment has fallen to 5.1 percent, officials are worried
   about inflation that is so low it threatens to drop into a cycle of
   falling prices and wages called deflation that could dry up demand and
   hurt the economy.

   That is why they are watching economic data closely to see when the
   economy is strong enough to stand a rate increase, which many
   economists say may come in December.  A rate increase would tend to
   boost inflation closer to the Fed's two percent target rate, which
   officials say is part of a manageable and healthy economy.

   Some economists are worried that the current near-zero interest rates
   give the Fed no room to maneuver when another recession begins to hurt
   the economy.

   Some recent reports have pointed to slowing growth in the United
   States, while some foreign economies are seeing weak growth.
     __________________________________________________________________

   [1]http://www.voanews.com/content/fed-holds-interest-rates-steady-at-re
   cord-low/3026796.html

References

   1. http://www.voanews.com/content/fed-holds-interest-rates-steady-at-record-low/3026796.html