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Federal Reserve Leaves Interest Rates UnchangedAired October 3, 2000 - 2:13 p.m. ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
NATALIE ALLEN, CNN ANCHOR: Well, the Federal Reserve has taken action, and we have just learned, as expected, it leaves interest rates unchanged. Let's go to Rhonda Schaffler, who can tell us more about why the Feds aren't taking any action this time around -- Rhonda.
RHONDA SCHAFFLER, CNN CORRESPONDENT: Natalie, you know, this was not unexpected, the Fed leaving rates unchanged, and that has to do with the continuation of signs the economy is slowing a bit, also perhaps the nearness of the presidential election might have had some influence.
Chairman Alan Greenspan and his colleagues at the Fed did not think the slowdown was enough, though, to drop its familiar warning about inflation. In fact, the Fed making some comments about energy prices may raising inflation concerns, and still sees an inflation risk. That in some of the commentary that has just crossed.
This is the third meeting in a row that the Federal Market -- Federal Open Market Committee has decided to leave interest rates unchanged. In fact, the last rate hike from the Fed came back in May. It was an aggressive rate hike then, it was the sixth rate hike in a series that began in June of 1999.
Now, let's get to the market's reaction. The Dow Jones industrial average was up about 140 points right before the announcement came out. At this point, the Dow is pulling back a bit from those strong gains. The Dow is up 111 points, Among the stocks giving some support to the Dow: United Technologies, DuPont, and 3M.
Technology stocks holding on to gains so far. The Nasdaq composite is up 31 points. The Nasdaq has lost ground in seven of the last eight sessions.
Recapping now, the Federal Reserve, as expected, leaving interest rates unchanged, but did mention energy prices as saying it will watchful for inflation going forward.
That is the latest from the floor of the New York Stock Exchange.
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