Federal Reserve policymakers opted on Tuesday to keep US interest rates steady at four-decade lows in a bid to keep an uneven economic recovery rolling with cheap credit for consumers and businesses.
Citing uncertainty about the outlook for growth in consumer and corporate demand -- deemed vital to prolonging economic growth -- policymaking members of the Federal Open Market Committee voted unanimously to keep its trendsetting federal funds rate for overnight loans between banks at 1.75 percent.
The US central bank's fed funds rate influences interest charges throughout the economy, for everything from new-car loans to corporate loan rates, so simply keeping it stable at current low levels is a tonic for borrowing.
The more symbolic discount rate was also unmoved at 1.25 percent.
In a statement after the meeting that closely mirrored one published following the preceding FOMC session on March 19, policymakers said the outlook for final demand was "uncertain" and that risks were balanced between inflation and weakness.
Analysts said the decision to stand pat on interest rates was no surprise, and that it was likely to be late summer at the earliest before the Fed initiates any action to reverse last year's string of 11 rate reductions.
(China Daily May 8, 2002)
