Fed: Rates to Remain Low

(December 10) --   Federal Reserve officials decided to leave the overnight interest rate at 1percent when they met yesterday; and the statement released after the meeting indicated that rates will remain low "for a considerable period" due to low inflation and slack resource use, which refers to the nation's high unemployment rate.

Officials did not remove the phrase "considerable period" from their statement as many analysts and investors had anticipated, but they did clarify the language to help observers understand their train of thought.

"It looks like they want to focus markets on jobs, low inflation, and slack," says Robert Dugger, an analyst at Tudor Investment. Experts believe the central bank's policymakers enhanced the statement to show investors that a focus on economic conditions is more important than speculating on the exact length of the "considerable period."

Source: The Washington Post (12/10/03); Berry, John M