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No change on US interest rates


No change on US interest rates


Even though the Federal Reserve is becoming more upbeat about the recovery of the US economy, it has left interest rates unchanged and close to zero after a two day policy meeting.

Fed Chairman Ben Bernanke has just been named Person of the Year by Time magazine, a public endorsement of his anti-recession policies.

His view is the recovery is fragile and that inflation is well in check suggesting the Fed will not be in a rush to raise interest rates.

It is a busy week for Bernanke, the Senate Banking Committee is due to vote on his nomination to a second term.

His first four-year term as head of the US central bank expires at the end of January.

With a weak jobs market and the banks still limiting lending, the Fed feels it is too soon to raise interest rates and risk stalling the recovery even though the current policy carries long-terms inflation risks.

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