|
Fed sits tight on rates
|
 |
March 30, 1999: 2:40 p.m. ET
Bond steady as FOMC, as expected, holds short-term rates at 4.75%
|
NEW YORK (CNNfn) - The U.S. Federal Reserve's policy-making panel voted Tuesday to leave interest rates unchanged, suggesting it believes inflationary pressures are at bay.
The Federal Open Market Committee, as is policy, didn't offer an explanation about why it recommended keeping the overnight lending rate at 4.75 percent, where it's been since November. The FOMC also held the discount rate on emergency loans at 4.5 percent.
Nor did the Fed panel offer details about its policy bias, which would suggest which way the panel may move at its upcoming meetings. The minutes of the FOMC's previous meeting are expected to be released Wednesday, and those could point to what the panel is thinking.
One economist said the Fed's inaction was appropriate. Many analysts expected that such a stand-pat position from the Fed was likely.
"You really don't want to do any sudden moves. The economy is doing really well. Why fix it? It doesn't need fixing," Maureen Allyn, chief economist at Scudder Kemper Investments, said.
The bond and stock markets took the announcement in stride for the most part.
The Dow Jones industrial average was down 59.11 points to 9,947.67, dropping a bit faster after the Fed announcement.
But the long bond remained on a climb. The 30-year Treasury issue was up 16/32 in price for a yield of 5.60 percent. 
|
|
|
|
|
|
U.S. Federal Reserve
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
