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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: Wayners who wrote (15530)	5/19/1998 3:45:00 PM
From: Moonray	Respond to of 22053

Fed leaves key U.S. interest rates unchanged 02:27 p.m May 19, 1998 Eastern WASHINGTON (Reuters) - The Federal Reserve left key interest rates unchanged on Tuesday as it weighed the risk of tight labor markets causing inflation to rise against the chance of Asia's crisis slowing the economy. The decision, confirmed by a Fed spokesman, left the overnight Fed funds rate, which determines borrowing costs throughout the economy, steady at 5.5 percent. The discount rate, at which the central bank extends emergency loans to commercial banks, remains at 5.0 percent. ''The Federal Open Market Committee meeting ended at 1:35 p.m. (1735 GMT),'' Fed spokesman Joseph Coyne said. ''There is no further announcement.'' The decision to stand pat on rates was widely expected by financial markets. It came against the backdrop of strong growth that many believe is unsustainable in the long run. Inflation in the world's top economy, however, still remains subdued. Fed policymakers will reconsider their strategy when they next meet on June 30/July 1, by which time many analysts say the Fed may have clearer evidence of economic overheating that could prompt it to dampen economic growth by raising rates. The Fed last changed official rates in March 1997, when it raised the federal funds rate by a quarter percentage point as an insurance against inflation. The discount rate was last changed in January 1996, when the Fed cut it by a quarter percentage point. Copyright 1998 Reuters Limited. All rights reserved. Republication and redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. o~~~ O