Fed says short-term rates stay at 1.25%

Manufacturing News, Source : TheManufacturer.com
Published : 10 Dec 2002 21:48

After dropping rates a half percentage point last month, the Federal Reserve voted Tuesday to keep short-term interest rates unchanged at a 40-year low of 1.25%.

The significant drop in demand for unemployment coverage and rebounds in consumer spending, confidence, and service-sector activity point to the regaining of economic stability. But the slowing down of manufacturing activity and income growth has lead economists to remain careful.

In written comments, the Federal Reserve stated that the Committee continues to believe its accommodative stance of monetary policy, coupled with still robust underlying growth in productivity, is providing important ongoing support to economic activity.

Comments on this story

click here to add a comment