Federal Reserve Board Leaves Interest Rates Unchanged

The Federal Reserve Board left rates unchanged for the ninth consecutive meeting; soon trying to remeber the last time they changed rates (August 2006) will be a Jeopardy question.

Inflation remains the FRB's main concern as they acknowledged the continuing malaise in the housing market; the recent volatility in the financial markets was also noted. Overall, the FRB appears content to wait for incoming future data before it makes up its mind as to the direction of interest rates. Traders and the futures market think rates will remain unchanged for the balance of 2007 and even into 2008.

Things will change rapidly if inflation heats up or recent capital markets volatility leads to a credit crunch.