Fed Leaves Interest Rates Unchanged

Wed., Aug. 21, 1996

Compiled From Wire Services

Federal Reserve policy-makers left interest rates unchanged Tuesday, apparently unable to find persuasive evidence the economy was growing so strongly that it threatened higher inflation.

“There was no compelling reason why it should have changed policy,” said economist Mark Zandi of Regional Financial Associates of West Chester, Pa. “The economy has slowed from its torrid second-quarter pace and inflation is under control.”

The Fed did not explain why its Federal Open Market Committee chose not to move. It merely reported the FOMC meeting had ended and said there would be no further announcement - a signal it had not changed interest-rate policy.

Many analysts believe the central bank will continue to hold rates steady at least until after the Nov. 5 election and perhaps through the remainder of the year. The FOMC next meets on Sept. 24 and then not until Nov. 13.

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Fed Leaves Interest Rates Unchanged

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