Maine Real Estate News

In the most recent meeting of the Federal Reserve the decision was made to hold interest rates steady. Wrapping up a two day meeting Fed Chariman Ben Bernanke announced that the central bank would hold rates at 5.25 percent, the same as June. The decision amoung all board members was unanimous.

The Fed’s decision meanst that commercial bank’s prime interest rates - for certain credit cards, home-equity lines of credit and other loans - would remain unchanged at 8.25%.

Before the Fed’s interest-rate pause, borrowers had endured two years of continuous rate increases. Looking at economic conditions, Fed officials cited readings on “core”inflation, which exludes energy and food prices, as haven gotten “modestly” better than recent months. In noting this improvment, they abandoned language in prevousl statements that described underlying inflation as potentially “somewhat elevated”.

Nonetheless, Fed policy makers continue to identify inflation as a risk to the economy and they will continue to take steps to ensure that it is moderated. The Fed does not want investors or consumers to think that it is letting down its guard on inflation, accoring to Lynn Reaser, chief economist at Bank of America’s Investment Strategies Group.