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Federal Reserve Speculation Says Rates May Rise

August 27, 2008

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.

(c) 2008 Daily Breeze. Provided by ProQuest LLC. All rights Reserved.




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