Interest rates unchanged as Fed awaits war

The Federal Reserve held interest rates steady on Tuesday in a unanimous vote but left open the possibility of a cut if the economy suddenly worsened.

Source: Associated Press

The Federal Reserve held a key interest rate steady at a 41-year low yesterday, giving policymakers time to see how a war with Iraq unfolds and gauge its effect on the fragile economy.

The decision by Fed Chairman Alan Greenspan and his Federal Open Market Committee colleagues means the federal funds rate will stay at 1.25