Fed Policy-Makers Concerned About Rate Hike Impacts on Economy
[FoxNews] 8/29/06
"Federal Reserve policy-makers at their August meeting halted their rate-raising campaign for the first time in two years, expressing concern that they didn't want to push up rates too much and hurt the economy.
By taking a breather, the Fed would have time to assess the toll on economic activity and inflation of its 17 rate increases since 2004, according to minutes of the Fed's Aug. 8 meeting, released Tuesday. It can take time for rate increases to work their way through the economy.
"The full effect of previous increases in interest rates on activity and prices probably had not yet been felt, and a pause was viewed as appropriate to limit the risks of tightening too much," the minutes said."
"Federal Reserve policy-makers at their August meeting halted their rate-raising campaign for the first time in two years, expressing concern that they didn't want to push up rates too much and hurt the economy.
By taking a breather, the Fed would have time to assess the toll on economic activity and inflation of its 17 rate increases since 2004, according to minutes of the Fed's Aug. 8 meeting, released Tuesday. It can take time for rate increases to work their way through the economy.
"The full effect of previous increases in interest rates on activity and prices probably had not yet been felt, and a pause was viewed as appropriate to limit the risks of tightening too much," the minutes said."
posted by rjgny2004 at 3:38 PM
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