June 25, 2008
WASHINGTON (AP) -- The Federal Reserve is expected to leave interest rates right where they are when it announces its decision this afternoon.
Analysts say the Fed is in a bit of a bind. While central bankers have indicated concern about rising prices, signs of weakness in the economy are seen keeping them from hiking interest rates.
If the benchmark rate does remain unchanged at two percent, then banks' prime rates would likely remain at five percent. The prime rate applies to certain credit cards, home equity lines of credit and other loans.
(Copyright 2008 Associated Press. All rights reserved.)
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