1. As expected, Fed officials left rates steady at their policy meeting today. 2. Bonds also got a boost amid optimism a slowdown would keep inflation at bay and allow the Federal Reserve to leave rates steady. 3. But if it leaves production steady, the decline in prices will cost its members revenues. 4. Declining inflation rates, in turn, will allow central bankers to leave rates steady. 5. German government bonds were little changed amid expectations the Bundesbank will leave interest rates steady as the economy shows signs of recovery. 6. It left rates steady at meetings in May, July, August and last week. 7. It left rates steady at the following four meetings. 8. Leaving rates steady would also signal that the Fed is satisfied with the current rate of growth and muted inflation in the U.S. economy. 9. Moderate growth and low inflation through the past year lulled many investors into assuming the Fed would leave rates steady to avoid derailing the healthy economy. 10. Several economic reports by private institutions failed to shake the expectation that the economy is healthy enough to encourage the Fed to leave rates steady. |