Federal Reserve Keeps Rates Unchanged

The Federal Reserve kept their benchmark lending rate at 5.25%. The statement released by the Fed indicates that the Fed anticipates that despite slow economic growth inflation could persist in the economy.

“Economic growth appears to have been moderate during the first half of this year, despite the ongoing adjustment in the housing sector. The economy seems likely to continue to expand at a moderate pace over coming quarters.

Readings on core inflation have improved modestly in recent months. However, a sustained moderation in inflation pressures has yet to be convincingly demonstrated. Moreover, the high level of resource utilization has the potential to sustain those pressures.”

source: Federal Reserve web site