Fed leaves rates unchanged at 5.25 pct for ninth consecutive meeting

BY

The Federal Reserve today decided not to change its key federal funds rate for the ninth
consecutive meeting, leaving it at 5.25 pct, where it has been for more than a year.

Federal Reserve Board Chairman Ben Bernanke and his colleagues on the policymaking Federal Open Market Committee said the economy is likely to continue to expand even as
financial markets have been volatile and there are signs of credit tightening in the economy.

"Financial markets have been volatile in recent weeks, credit conditions have become tighter for
some households and businesses, and the housing correction is ongoing," the one-page statement
said.

Still, "the committee s predominant policy concern remains the risk that
inflation will fail to moderate as expected."

The next scheduled meeting is not until September 18, though the Fed is not prohibited from
making surprise announcements.

168

JKL

thanks