Fed Leaves Key Interest Rate Unchanged

The Fed's interest-rate policy committee did nothing today. Again. And housing played a part. The central bankers have kept the benchmark Fed Funds rate at 5.25% since June, after ramping it up from its cyclical low of 1% before June 2004. See this snippet of the Fed's post-meeting comments from today:

"Economic growth slowed in the first part of this year and the adjustment in the housing sector is ongoing. Nevertheless, the economy seems likely to expand at a moderate pace over coming quarters."...

vs. March's comments:
"Recent indicators have been mixed and the adjustment in the housing sector is ongoing. Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters."...

vs. January's comments:
"Recent indicators have suggested somewhat firmer economic growth, and some tentative signs of stabilization have appeared in the housing market. Overall, the economy seems likely to expand at a moderate pace over coming quarters."

To read today's entire Fed statement, CLICK HERE

WSJ's Parsing the FOMC Statement

Housing Bubble and Real Estate Market Tracker from SA for 5/9