The Federal Reserve decided today (Aug. 22) to leave interest rates unchanged.
This means the benchmark prime interest rate, most likely, will remain at 9.5%, the level it has been at since May 17.
Although the Federal Open Market Committee (FOMC) remains worried about inflation, it stated today, “Demand is moderating toward a pace closer to the rate of growth of the economy’s potential to produce.”
Higher wages, resulting from a shortage of qualified labor, was again listed by the FOMC as the primary reason why it is worried about inflation.
The current 9.5% prime rate is the highest since 1991.
The next FOMC meeting is scheduled for Oct. 3.