Fed Leaves Door Open to Future Rate Increases

Washington Post (07/31/08) P. D1; Irwin, Neil
The Federal Reserve will almost definitely leave interest rates alone when it convenes next week. Instead, much debate will likely center on how and when to raise rates in the future. The U.S. economy and financial markets have become weaker since the last meeting of Fed policymakers in late June, but these officials believe the dramatic rate cuts they undertook in the first six months of 2008 are probably enough to keep growth from falling completely by the wayside. Meanwhile, central bank leaders are looking to remain flexible by not committing to any particular policy in the months ahead.