Central Bank

WASHINGTON -- The ever-cautious Federal Reserve resisted Wall Street pressures yesterday and decided to keep interest rates steady despite concerns over a possible credit crunch that could sink the economy. About the only consolation for financial markets was the fact that the central bank at least mentioned these concerns in a statement after its meeting. That acknowledgment gave Wall Street faint hopes of an interest-rate cut later this year if credit conditions continue to deteriorate.

WASHINGTON -- Unless you planned a vacation to New Zealand, you probably don't care much that its central bank raised its lending rate to a record high this month. But U.S. Federal Reserve Chairman Ben S. Bernanke cares, and his concern is likely to arise when the Fed's policymaking body begins a two-day meeting today. New Zealand raised its rate to 8 percent because the global economy, enjoying the longest streak of above-average growth in more than three decades, is so hot that it's sparking inflation, or rising general prices.

WASHINGTON -- The economy is sluggish and gasoline prices have hit a record. The stock market is booming and joblessness is low. The housing market is slumping and so is the value of the dollar. And inflation is up slightly and still alive. But the Federal Reserve? It's as steady as a rock. For the seventh straight meeting, the nation's central bank decided yesterday to make no change in interest rates. It's been this way for almost 11 months, and could be that way for the foreseeable future.

WASHINGTON -- Just when it appeared that inflation was under control, it showed its old stubborn self in a government report yesterday. The Producer Price Index, which measures inflation at the wholesale level, rose 2 percent in November over October, the most in 32 years, the Labor Department said. Higher prices for commodities, such as gasoline, and motor vehicles led the upward push. The rise was four times higher than financial markets expected and may have been an aberration. While many analysts said the rate of wholesale inflation likely would subside in the months ahead, it served as a warning that keeping the lid on rising prices could be more troublesome than widely believed.

WASHINGTON -- New signs appeared yesterday that the economy is stuck in a slowdown, but Federal Reserve Chairman Ben S. Bernanke made it clear he's more worried about inflation and is not prepared to cut interest rates anytime soon. The head of the nation's central bank said in a New York speech that the "core" inflation rate, which excludes food and energy costs, "remains uncomfortably high" and could even trigger an interest-rate increase if not brought under control. Over the next year, he said, the economy likely will pick up strength and grow at a modest but sustainable rate without further interest-rate reductions.

WASHINGTON -- The Federal Reserve decided yesterday to keep interest rates steady even as it stared an abundance of future economic uncertainty in the face. Holding its benchmark short-term interest rate at 5.25 percent for the second straight meeting, the nation's central bank issued a skimpy analysis of the economy that left few clues as to its next move, suggesting its members are uncertain about the outlook. The vote was 10-1 in favor of standing pat, with Jeffrey Lacker, head of the Richmond Federal Reserve Bank, dissenting.

WASHINGTON -- The Federal Reserve's interest rate increases could be over for the foreseeable future. Credit luck on the energy front, in part. But a sinking housing market is also playing a prominent role, along with deep troubles in the automobile industry. Falling oil and gasoline prices and the bursting of the housing bubble have helped the central bank and its relatively new chairman, Ben S. Bernanke, breathe a sigh of relief about those haunting fears of inflation he had harbored.

WASHINGTON -- After raising interest rates 17 straight times since June 2004, the Federal Reserve decided yesterday to stop and see whether it has already done enough to keep inflation in check and the economy out of recession. Its decision means that holders of home-equity loans, adjustable-rate mortgages and credit card debt will be spared higher payments - unless the nation's central bank decides at some point to raise rates again. It also means there won't be another immediate boost in the prime rate, on which some loans are based, and it could mean that long-term interest rates, such as those on mortgages, no longer will be on the rise and might even fall.

WASHINGTON -- A weaker-than-expected employment report for July might be all the Federal Reserve needs to take a pause from raising interest rates after 17 straight increases. That was a conclusion in financial markets yesterday after the Labor Department reported that payroll jobs rose 113,000 last month, about 37,000 below the consensus figure. The national unemployment rate rose to 4.8 percent in July from 4.6 in June. Central bankers have been looking for the right moment to bring its interest rate increases to a halt-- and analysts said that moment appears to have arrived as a result of the less-than-robust employment picture.

Beijing -- China's trade surplus widened to a record $14.5 billion in June as exports surged, increasing pressure on the government to let the yuan appreciate. The surplus soared from $13 billion in May, beating the $12.8 billion median forecast of 26 economists surveyed by Bloomberg News. Exports increased 23 percent from June last year, the Ministry of Commerce said yesterday on its Web site. Inflows of foreign exchange have pushed China's reserves to $875 billion, the world's largest, and fueled an investment boom that has driven prices of metals to record levels and threatens to fan inflation.