While acknowledging that "credit conditions have become tighter for some households and businesses" as financial markets react to upheaval in the mortgage lending industry, Federal Reserve officials aren't ready to slash the federal funds rate. The Federal Reserve's Open Market Committee voted unanimously Tuesday to leave the key short-term rate at 5.25 percent, saying worries about inflation continue to trump the potential impact of the downturn in the housing market. A statement issued by the committee gave no indication that problems in mortgage lending have shaken that conviction. The Fed's "predominant policy concern" remains the risk that inflation will fail to moderate as expected, the statement said. "Future policy adjustments will depend on the outlook for both inflation and econ...
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