h1

No Rate Increase

August 10, 2006


The Federal Reserve kept the benchmark U.S. interest rate at 5.25 percent, ending a record two-year run of increases. The rate was 1 percent when policy makers began a series of 17 consecutive quarter-point moves in June 2004. New data show slower economic and job growth, while a drop in Treasury yields over the past month indicates investors are expecting the Fed to take a break from rate increases. Key to the slowing economy has been a cooling housing market. Since the Fed began raising rates, the average rate on a one-year adjustable mortgage has jumped to 5.69 percent from 4.13 percent, according to Freddie Mac.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: