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Fed Leaves Interest Rates Unchanged - 2003-03-19

The U.S. central bank (the Federal Reserve) has decided to leave interest rates at their current 41-year low.

Fed policy-makers kept the key rate at 1.25 percent, but said they would be ready to act if a war in Iraq impacts the economy.

The Federal Open Market Committee said although recent indicators have been disappointing, it is too early to determine if a war will prevent the economy from rebounding. The next fed meeting is set for May 6, but policy-makers can hold unscheduled talks to change rates if need be.