With the prime focus shifting to inflation, the Federal Reserve elected to keep rates the same during their regularly scheduled meeting Wednesday.
The key short-term interest rate was left the same, ending the rate cut streak that went back to last August. The short-term federal funds rate was left at 2% which means the prime interest rate stays at 5%.
With signs of inflation, the Fed made a statement that led some analysts to beleive that interest rates will go up later this year. Food and oil prices are threatening to rise sharply – raising the cost of credit could ward this off.
Although there was no mention of the stimulus checks, economists state that spending and growth would have been flat through the middle part of the year.