FED LETS STRONG ECONOMY ALONE.Byline: Richard Stevenson For the novelist, see . Richard Stevenson is a Canadian poet who lives in Lethbridge, Alberta. Works:
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Times After considering evidence that growth is slowing from its torrid pace, the Federal Reserve decided Wednesday to leave interest rates unchanged, betting that the economy could continue to enjoy low unemployment without inflation. The decision had been widely expected among economists and investors. As is its custom when it leaves rates unchanged, the Federal Open Market Committee, the central bank's policy-making pol·i·cy·mak·ing or pol·i·cy-mak·ing n. High-level development of policy, especially official government policy. adj. Of, relating to, or involving the making of high-level policy: panel, gave no explanation for its decision. The committee completed a two-day meeting Wednesday afternoon. But Fed officials undoubtedly debated the mystery of the day: Why is the economy, now in its seventh year of expansion, no longer following the old rule that mixing strong growth and low unemployment inevitably leads employers to push up wages and then pass along the costs in the form of higher prices to consumers? ``I don't think they understand - and I certainly don't understand - how we could have sustained growth for this long with no evidence of inflationary pressures,'' said Joseph Liro, an economist at CIBC Wood Gundy CIBC Wood Gundy was created in 1988 with the purchase of Wood Gundy Inc. by CIBC. CIBC Wood Gundy is a division of CIBC World Markets. Canadian Imperial Bank of Commerce Chief Executive Officer: Gerald T. McCaughey | FY 2006 Statistics: Net income: $2. , an investment firm. ``Whatever is happening, it's wonderful, and they understand that the Fed has no mandate to upset an apple cart that is moving along nicely and is stocked with Adj. 1. stocked with - furnished with more than enough; "rivers well stocked with fish"; "a well-stocked store" stocked furnished, equipped - provided with whatever is necessary for a purpose (as furniture or equipment or authority); "a furnished apartment"; very nice apples.'' The Fed is next scheduled to meet Aug. 19. |
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