FOMC Maintains Fed Funds Target Rate

Not surprisingly, the Federal Open Market Committee (FOMC) announced today that it would hold the federal funds target rate at 5 1/4%.  For the past few weeks, Fed officials have cautioned that, although economic growth has slowed and core inflation seems to have moderated somewhat, there remains some concern about inflation risk.  The FOMC statement reiterated that concern.  The next FOMC meeting will be Jan. 30 & 31, 2007.

Link:  http://www.federalreserve.gov/BoardDocs/press/monetary/2006/20061212/default.htm

(ag) Dec. 12, 2006, in Economy/Interest Rates