WASHINGTON — Federal Reserve policymakers left short-term interest rates unchanged Tuesday, and also indicated they are neutral on their outlook for rates--meaning they are just as likely to tighten credit as loosen it in the future.
The central bank's meeting was a yawner for Wall Street because most economists had anticipated that the Fed would take no action.
Faced with a strong U.S. economy but few signs of inflationary pressures and a still dicey situation in many foreign economies, leaving well enough alone makes perfect sense to Fed Chairman Alan Greenspan, experts said.
The Fed has held its benchmark short-term interest rate, the federal funds rate, at 4.75% since November. It had cut that rate from 5.5% in three installments starting in late September, amid severe global market fallout from Russia's economic crisis.