WASHINGTON– Despite the woes of the financial markets, the Federal Reserve's Open Market Committee voted unanimously today to keep interest rates the same.
“Strains in financial markets have increased significantly and labor markets have weakened further. Economic growth appears to have slowed recently, partly reflecting a softening of household spending. Tight credit conditions, the ongoing housing contraction and some slowing in export growth are likely to weigh on economic growth over the next few quarters. Over time, the substantial easing of monetary policy, combined with ongoing measures to foster market liquidity, should help to promote moderate economic growth,” the committee said in a statement.
The decision keeps the rate banks use when lending to each other at 2%.
“The downside risks to growth and the upside risks to inflation are both of significant concern to the committee. The committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability,” the committee said.
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