This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6246278.stm
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Fed expected to keep rates steady | Fed expected to keep rates steady |
(about 1 hour later) | |
The US Federal Reserve is widely expected to keep interest rates at their current level of 5.25% at the end of its June meeting on Thursday. | The US Federal Reserve is widely expected to keep interest rates at their current level of 5.25% at the end of its June meeting on Thursday. |
As its rate-setting Open Market Committee sits down for two days of talks, many analysts predict that rates will remain unchanged. | As its rate-setting Open Market Committee sits down for two days of talks, many analysts predict that rates will remain unchanged. |
More important will be the comments that accompany the Fed's decision which could help predict its next move. | More important will be the comments that accompany the Fed's decision which could help predict its next move. |
Inflation concerns have fanned fears that rates could still move higher. | Inflation concerns have fanned fears that rates could still move higher. |
Marked shift | Marked shift |
This is a marked shift from the consensus until recently that rates were likely to be cut by the end of the year. | This is a marked shift from the consensus until recently that rates were likely to be cut by the end of the year. |
The Fed for the next six to nine months will walk softly and carry a big stick Richard Yamarone, Argus Research | The Fed for the next six to nine months will walk softly and carry a big stick Richard Yamarone, Argus Research |
The change in expectation comes on fresh predictions of a rebound in economic growth, despite almost flat growth of 0.6% for the first three months of the year and the continued housing market weakness. | The change in expectation comes on fresh predictions of a rebound in economic growth, despite almost flat growth of 0.6% for the first three months of the year and the continued housing market weakness. |
At the beginning of this month, Federal Reserve Chairman Ben Bernanke talked of inflation as being "somewhat elevated". | At the beginning of this month, Federal Reserve Chairman Ben Bernanke talked of inflation as being "somewhat elevated". |
"The Fed for the next six to nine months will walk softly and carry a big stick," said Richard Yamarone, economist at Argus Research. | "The Fed for the next six to nine months will walk softly and carry a big stick," said Richard Yamarone, economist at Argus Research. |
"You'll hear them talk up the detriments of higher inflation. But I seriously doubt they'll change policy, " he added. | "You'll hear them talk up the detriments of higher inflation. But I seriously doubt they'll change policy, " he added. |
Central banks around the world have been raising interest rates as fears of inflation have increased. | |
But economic growth this year in the US is expected to be slower than its main competitors in Europe and Asia. | But economic growth this year in the US is expected to be slower than its main competitors in Europe and Asia. |
Previous version
1
Next version