WASHINGTON– Citing a continued soft labor market and despite increases in consumer spending and exports, the Federal Reserve's Open Market Committee voted 9-1 today to keep interest rates the same.
“Tight credit conditions, the ongoing housing contraction , and elevated energy prices are likely to weigh on economic growth over the next few quarters,” the committee said in a statement. “Over time, the substantial easing of monetary policy, combined with ongoing measures to foster market liquidity, should help to promote moderate economic growth.”
The decision keeps the rate banks use when lending to each other, at 2%. It's the second consecutive time the committee has left rates unchanged. Previously, the panel had e last summer. The panel has voted rate reductions seven consecutive times.
The sole dissenter in the vote was Dallas Federal Reserve Bank President Richard Fisher.
“Although downside risk to growth remains, the upside risks to inflation are also significant concern to the committee,” the panel added in its statement.
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