BREAKING NEWS

BREAKING NEWS

Fed likely to keep interest rate unchanged

Now Reading:

Fed likely to keep interest rate unchanged

Text size Aa Aa

The US central bank, the Federal Reserve, is expected to keep its benchmark interest rate unchanged at 2% at the meeting of its policy-setting committee this week.

It has more than halved rates since mid-September trying to prevent the housing slide and credit contraction from triggering a deep recession.

The problem for Fed Chairman Ben Bernanke is that he has to address inflation, which hit an annual rate of 4.2% in May without raising the cost of borrowing.