WASHINGTON-As credit union economists predicted, the Federal Open Market Committee (FOMC) decided yesterday to leave its target for the federal funds rate at 1 3/4%. While the American economy is on an upswing with a significant increase in inventory investment, the Fed has said it wants to see sustained economic growth before it will consider raising rates again. "In these circumstances, although the stance of monetary policy is currently accommodative, the Committee believes that, for the foreseeable future, against the background of its long run goals of price stability and sustainable economic growth and of the information currently available, the risks are balanced with respect to the prospects for both goals," a Fed news release read. NAFCU Economist Jeff Taylor said the FOMC could wait as long as September to increase rates. The vote was unanimous.
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