Fed Steady on Interest Rates

December 10, 2002 (PLANSPONSOR.com) - Finding some room for optimism, the Federal Open Market Committee (FOMC) decided today to keep its target for the federal funds rate unchanged at 1.25%.

The unanimous decision by the Federal Reserve noted that “The limited number of incoming economic indicators since the November meeting, taken together, are not inconsistent with the economy working its way through its current soft spot.”

The Fed also maintained its characterization of the risks faced by the economy as evenly balanced between rising prices and a renewed downturn.   That stance, adopted at  last month’s FOMC meeting , was seen by many as a signal of steady rates for the foreseeable future.