The US central bank, the Federal Reserve, has concluded its two-day policy-setting meeting.
There were no surprises, chairman Ben Bernanke and his colleagues did not change interest rates. The cost of borrowing remains at a record low and from the Fed’s statement an increase in rates is likely to be a long way off. Like other central banks and economic think tanks, the Fed acknowledged signs of activity picking up in some areas but also stressed that the US economy remains fragile. For the moment the policy of directly buying longer-term Treasury bonds to boost the money supply continues. Inflation slowed in May, though Wall Street remains fearful the Fed’s efforts could raise inflation in the future.