Fed Holds Rate Steady While Easing Concern Over Inflation

Fed Holds Rate Steady While Easing Concern Over Inflation

www.nytimes.com

With jobs leaking from the economy month after month, Federal Reserve policy makers decided on Tuesday to keep the key interest rate they control at its current level of 2 percent, and they backed away from earlier concerns about inflation.

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I find that the lone dissenting vote was noteworthy:

By a vote of 10 to 1, policy makers declared that inflation remained “of significant concern” — a description that seemed to give less importance to the inflationary risks of keeping rates low than the policy makers had at their meeting on June 25. The lone nay vote came from Richard W. Fisher, president of the Federal Reserve Bank of Dallas, who sought an immediate increase in the federal funds rate, a short-term rate that influences the cost of mortgages, car loans and a host of other consumer credit.

Perhaps they are 'hedging' a bit?

www.nytimes.com
(visit the link for the full news article)