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| Version 1 | Version 2 |
|---|---|
| Fed keeps US rates steady at 2% | Fed keeps US rates steady at 2% |
| (10 minutes later) | |
| Key US interest rates have been held at 2% in an expected move, amid signs of continuing problems in the housing market and falling consumer confidence. | Key US interest rates have been held at 2% in an expected move, amid signs of continuing problems in the housing market and falling consumer confidence. |
| Analysts have pointed out the Federal Reserve faces a difficult balancing act as it tries to cope with rising prices and a slowing economy. | Analysts have pointed out the Federal Reserve faces a difficult balancing act as it tries to cope with rising prices and a slowing economy. |
| US consumer confidence is reportedly at its lowest level in 16 years. | US consumer confidence is reportedly at its lowest level in 16 years. |
| And a major survey suggested house prices were substantially lower in April, compared with a year earlier. | And a major survey suggested house prices were substantially lower in April, compared with a year earlier. |
| The main federal funds rate, at which banks charge each other, has been kept at 2%, marking the first time in 10 months the Fed has failed to reduce interest rates. | The main federal funds rate, at which banks charge each other, has been kept at 2%, marking the first time in 10 months the Fed has failed to reduce interest rates. |
| 'Inflation expectations' | 'Inflation expectations' |
| In a statement the central bank's chairman Ben Bernanke and his colleagues alluded to the threats to growth and worries about rising inflation pressures. | In a statement the central bank's chairman Ben Bernanke and his colleagues alluded to the threats to growth and worries about rising inflation pressures. |
| They said the downside risks to growth "appear to have diminished somewhat" but that "the upside risks to inflation and inflation expectations have increased." | They said the downside risks to growth "appear to have diminished somewhat" but that "the upside risks to inflation and inflation expectations have increased." |
| Analysts have suggest the next move in rates could now be upwards in an attempt to tackle inflation. | Analysts have suggest the next move in rates could now be upwards in an attempt to tackle inflation. |
| The latest decision was approved by a 9-1 vote with Richard Fisher, president of the Fed's regional bank in Dallas, calling for a rise in interest rates now to fight inflation. | The latest decision was approved by a 9-1 vote with Richard Fisher, president of the Fed's regional bank in Dallas, calling for a rise in interest rates now to fight inflation. |
| Property woes | Property woes |
| However some economists say that raising rates could worsen the economic slowdown caused by crises in the credit and housing markets, economists suggest. | |
| It is a situation that the head of the International Monetary Fund, Dominique Strauss-Kahn, recently described as being caught between "fire and ice". | It is a situation that the head of the International Monetary Fund, Dominique Strauss-Kahn, recently described as being caught between "fire and ice". |
| In the housing market, property prices fell by their fastest rate since 2000, according to the Case-Schiller home price index released on Tuesday. | In the housing market, property prices fell by their fastest rate since 2000, according to the Case-Schiller home price index released on Tuesday. |
| The latest reading of US consumer sentiment has also showed conditions worsening. | The latest reading of US consumer sentiment has also showed conditions worsening. |
| Higher food and fuel prices and fears over the economy, jobs and wages mean that US consumers' expectations for the next six months are at an all-time low, according to the Conference Board, which polls 5,000 households monthly. | Higher food and fuel prices and fears over the economy, jobs and wages mean that US consumers' expectations for the next six months are at an all-time low, according to the Conference Board, which polls 5,000 households monthly. |