Federal Reserve expected to leave key rate at 2%

Sue Kirchhoff
USA TODAY
Tuesday, June 24, 2008

Worried that rising inflation poses an increasing threat to the economy, the Federal Reserve is expected to end its nearly year-long campaign of steep interest rate cuts when it meets starting today.

Fed officials, in their scheduled two-day meeting, could hold their key rate for short-term lending at its current 2% for some time, as growth remains sluggish.

Economists and market analysts will closely scour the policy statement to be issued Wednesday afternoon with the target interest rate for clues as to how long the Fed could stand pat before possibly increasing interest rates.
FULL ARTICLE @ USA TODAY