The Federal Reserve's policymaking body voted in September 2006 to leave the federal funds rate unchanged at 5.25 percent, concluding that the pace of economic expansion was slowing, in part because of a softening housing sector.
While core inflation had remained elevated, the Fed indicated that price pressures were expected to ease over time, citing declining energy costs, anchored inflation expectations, and the cumulative impact of prior monetary policy decisions on overall demand.
The committee acknowledged that inflation risks had not fully dissipated and said any future rate adjustments would depend on incoming data regarding both price levels and economic growth.
Ten members of the Federal Open Market Committee supported the decision. The lone dissenter, Jeffrey M. Lacker, favored raising the target rate by 25 basis points at the meeting. The majority included Chairman Ben S. Bernanke and Vice Chairman Timothy F. Geithner, along with eight other members.
Historical summary. TurkishPress restated this wire report, first published in September 2006, in its own words.