US policy makers receive mixed messages

The Federal Reserve kept the benchmark US interest rate at 5.25% in March and unexpectedly abandoned its tilt toward higher borrowing costs. "Future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth," the Federal Open Market Committee (FOMC) said in Washington. While inflation is the 'predominant' concern, the statement dropped a reference to 'additional firming', giving central bankers more flexibility on the direction of interest rates. indicators Policy makers said recent economic indicators have been 'mixed' and acknowledged the pe...