Fed leaves interest rates unchanged

[Roon]

he Federal Reserve Wednesday left interest rates unchanged where they have been since mid-2006 even as the economy showed surprising signs of bouncing back from a housing-induced slowdown.

After a two-day meeting to study the economy's prospects for the year, Fed Chairman Ben Bernanke and his colleagues left the key overnight bank lending rate at 5.25 percent, where it has stood since June 29.

It was the fifth straight time the central bankers have met and elected to leave the rate unchanged, leaving borrowing costs steady on a range of consumer and business loans.
http://www.msnbc.msn.com/id/16905240/

[phantom power]

1. This cannot go on forever. The prime rate must eventually increase.

If for no other reason than to entice our foreign investors to keep financing United States debt.

[roamer65]

2. Bernanke's stalling.

He's in a catch-22 and he knows it. The housing market has NOT stabilized and yet higher rates will be required to keep foreigners interested in our bonds. I don't envy his job.