| The Federal Open Market Committee
decided today to keep its target for the federal funds rate at 5-1/4
percent.
Economic growth slowed in the first
part of this year and the adjustment in the housing sector is ongoing.
Nevertheless, the economy seems likely to expand at a moderate pace over
coming quarters.
Core inflation remains somewhat
elevated. Although inflation pressures seem likely to moderate over
time, the high level of resource utilization has the potential to
sustain those pressures.
In these circumstances, the Committee's
predominant policy concern remains the risk that inflation will fail to
moderate as expected. Future policy adjustments will depend on the
evolution of the outlook for both inflation and economic growth, as
implied by incoming information.
Voting for the FOMC monetary policy
action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice
Chairman; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Cathy
E. Minehan; Frederic S. Mishkin; Michael H. Moskow; William Poole; and
Kevin M. Warsh.
Source: FOMC |
