The FED hold steady on rates

The Federal Reserve left interest rates steady today, and the possibility was raised that the rates would be cut in months to come. The rates as been the same since August last year.
On Wall Street, stocks rose sharply. The Dow Jones industrials closed up 159.42 points at 12,447.52 in the index's biggest one-day gain since July 24.

This decision by the Federal Reserve Bank means that the prime interest rates by Banks will remain at 8.25 percent, for certain credit cards, and Home Equity loans, and lines of credit.

Federal Reserve chairman Ben Bernanke forcasts that inflation would recede overtime and that the economy would grow more moderate despite the decline in housing sales and the troubles faced by sub-prime lenders.

Even with lackluster economic growth, however, the jobs market remains in good shape. The unemployment rate dropped to 4.5 percent in February and workers saw increases in their income even as bad winter weather sent a chill through U.S. job growth.