Thursday, May 31, 2007

Fed May Keep Rate Unchanged as Housing, Prices Pull in Opposite Directions

(Bloomberg) -- Federal Reserve Chairman Ben S.
Bernanke is pulled in opposite directions by worries over
inflation and housing, leaving him little choice other than to
keep interest rates unchanged.

Fed officials said they still expect a pickup in the
economy this year and view inflation as their main concern,
minutes of their May 9 meeting showed yesterday. They listed
several caveats, including the risk that the housing recession
may ``weigh heavily'' on growth.


Read more at Bloomberg Currencies News

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