Financial Times FT.com

Inflation fears persist as Fed holds rates

By Krishna Guha in Washington

Published: August 5 2008 19:13 | Last updated: August 5 2008 21:59

The Federal Reserve on Tuesday pushed back the horizon for possible rate increases by acknowledging continuing risks to growth, but emphasised that inflation risks were “also of significant concern”.

Interest rates were kept on hold at 2 per cent and the central bank provided no signal that it intended to raise rates at its next policy meeting in September, while offering little guidance beyond that.

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