After Tuesday’s Fed meeting, interest rates were held at 5.25%, ending an unbroken series of rises that began in June 2004.
At the meeting it was noted that “some inflation risks remain”, leaving open the extent and timing of any additional firming. This suggests that the Fed retains a tightening bias and it is more likely that it’s next move will be up.
Crude oil has eased back from the highs reached on Monday following BP’s decision to shut down the giant Prudhoe Bay oilfield in Alaska.
Copper prices broke through the $8,000 per tonne mark on Monday as industrial action began at Chile’s Escondida mine.
US unemployment rose last month for the first time this year – further evidence that the economy is slowing .
This was one of the many economic indicators used by the Fed in deciding to keep interest rates on hold
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