Fed gently hinted at a tough policy

Finansy26-06-2008 Fed gently hinted at a tough policy the U.S. Federal Reserve decided not to lower interest rates and keep it at 2%. Thus ended the most aggressive period of declining value of money over the past two decades, as rising energy prices threatens to cause the acceleration of inflation. On Wednesday the U.S. Federal Reserve (Fed) decided to keep the base interest rate on the overnight losses of 2%. Since last September, the rate equal to 5.25% per annum then, was lowered seven times in a row. In a statement the Fed indicated that the risk of recession in the U.S. has declined, and now should focus on inflation. Fed officials also noted that, according to latest figures, overall the economy grow, but the remaining challenges in the labor market and the financial sector. "The Committee expects that inflation will become more moderate later this year and next year - said in a statement after a meeting of Federal Open Market Committee (FOMC). - Nevertheless, in light of the continued increase in energy prices and some other commodities, as well as elevated state of some indicators of inflation expectations, uncertainty about the prospects for inflation remains high. "