August 27, 2008
Federal Reserve Speculation Says Rates May Rise
WASHINGTON - Even as they grappled with inflation worries, most Federal Reserve officials at their August meeting didn't believe the Fed's key interest rate was too low given harder-to-get credit conditions straining consumers and businesses alike.
Documents released Tuesday provided insight into the Fed's thinking at the Aug. 5 meeting, when central bank policymakers decided to hold its key rate at 2 percent for the second straight meeting. Confronted by problems at every turn - rising unemployment, shaky growth, credit troubles and creeping inflation - the Fed took a gamble that once again the best move was none at all.
But looking ahead, the next direction for rates is probably up, according to the documents.
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