The US FED, in its meeting today, has retained the bank interest rates at the current level form some more time. The retention of the interest rates at 0% to 0.25% levels , is due to the need to help the economy recover from the recession.
The US FED is most likely to start hiking the interest rates , probably from the end of 2009, once there are clear signs of economic recovery.
Also, if the inflation starts shooting up, then the US FED might be forced to start hiking the bank rates, even if the economic indicators are weak. The US FED is also worried at the huge budget deficit of the US government, and has requested the government to work on reducing the same on a priority basis.
Filed in: Business and Finance

