Fed Policymakers Hold Interest Rates Steady
.Û¢* Federal Reserve officials decided jjssterday to leave short-term interest rates unchanged, despite recently strong economic growth, because of the persistence of low inflation.</br></br>Û¢i It has now been more than a year isince the Fed last changed its target for .fates, but with inflation under control ,apd tiie economy performing well, Fed ..Chairman Alan Greenspan and other .policymakers have been content not to tinker. Many financial analysts said it is talso likely that no changes will be made .at the next meeting on March 25.</br></br>;,. As is usual when there is no change ;in policy, Fed spokesman Joseph R. -jCoyne simply announced the meeting Jiad ended with no further explanation. cÛ_ The FedÛªs decision, coming at the Û_end of a Iwoslay policymaking session, .also undoubtedly was influenced by the Jjact that, most recent economic siatis-j.tics have been pointing toward some r.cooling alter a surge in growth late last year, analysts said.</br></br>p> At a similar"tMHlay session a year flago, most- of the officialsÛª forecasts .(Crlli-d -for growth of a bit ntoreihau 2 tjjercent from the fourth quarter of 199.5 do the -fourth <|uarter of last year. Last "week the Commerce Department eai-./liatttl the actual increase at 3.-I ;ier-.iOenl, with growth hitting an annual rate fit 4.7 percant'inttie final three months of the year. However, according to various price indexes linked to those growth figures, inflation declined last year despite the faster economic pace.</br></br>At a confirmation hearing yesterday on her nomination to be chairman of the presidentÛªs Council of Economic Advisers, Fed Board member Janet L. Yelien told the Senate Banking Committee, "Throughout our long expansion, inflation lias remained low and fallen by most broad measures; and investment in plant and equipmentÛÓthe driving force of this expansionÛÓhas grown at a phenomenal pace,Û