Financial Times FT.com

Fed looks set for extended rate pause

By Krishna Guha in Washington and Michael Mackenzie in New York

Published: October 11 2006 19:34 | Last updated: October 12 2006 00:27

The Federal Reserve looks set to keep interest rates on hold for an extended period after minutes of its September policy meeting, released on Wednesday, showed the central bank was still mindful of inflation risks.

The minutes indicated the Fed’s Open Market Committee felt that a decline in energy prices, slower growth and slightly lower readings on core inflation “pointed to a modestly better inflation outlook” than in August but it continued to see a “substantial risk that inflation would not decline as anticipated”.

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