June 24, 2010
The US Federal Reserve opted to hold interest rates steady at record lows as it cautioned that Europe’s debt problems could slow American economic growth.
The Federal Open Markets Committee (FOMC) of America’s central bank voted 9-1 in favour of maintaining its federal funds rate at a range of 0pc-0.25pc for the 13th meeting in a row, as it adopted a somewhat cautious stance on future growth.
The central bank, chaired by Ben Bernanke, for the first time gave a formal nod to the problems in Greece and Spain and other eurozone nations struggling with high debt levels.
“Financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad,” the FOMC statement warned. Until now the rate-setting committee had consistently said that “financial market conditions remain supportive of economic growth.”
This article was posted: Thursday, June 24, 2010 at 7:37 am