Home / World Business
Mon, May 05, 2003 - Page 12 News List

US Reserve will hold rates at forty-year low

POSTWAR FOCUS Another interest cut could spark fears that the Fed is desperate to avert a Japanese style deflationary spiral, as economists await the peace dividend

AFP , WASHINGTON

"Better to be quite neutral in their description of economic activity or plead ignorance than to go ahead and say the economy is doing poorly but not cut rates," he said.

Joel Naroff, president of Naroff Economic Advisors, said he believed the FOMC would hold rates unchanged and issue a neutral statement about the economic outlook, "just to confirm the Fed view that there's a good chance that conditions will bounce back."

This story has been viewed 1952 times.
TOP top