Fed Leaves Rates Alone

For a second straight meeting, the Federal Reserve has decided to remain on the sidelines and leave interest rates alone. In the opinion of many economists, that stance may prevail not only for the rest of this year but well into 2009. The Fed cited both worries about inflation and weak economic activity in the statement it released after its recent meeting explaining its decision to leave its target for the federal funds rate, the interest that banks charge each other, unchanged at 2 percent.