Fed holds rates as inflation risks increase

At a meeting of the Federal Open Market Committee last night, the Fed shifted its policy from promoting growth to curbing increased inflationary dangers. Rates were held for the first time since August, despite the Fed admitting financial markets remain under “considerable stress”. “Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased,” it says. “The committee expects inflation to moderate later this year and next year. “However, in light of the continued increases in the prices o...