Federal Government holds U.S. interest rate at 2 percent on 100 Mortgages

The Federal government hold the U.S. interest rate at 2 percent, it was an unanimous decision to leave the interest rate at 2 percent, the decision surprised several people in the financial markets who expected the U.S. government to show more worries on growth, although the government commented “Downside risks to growth and the upside risks to inflation are both of significant concern.”

In one of the worse weeks of onslaught in the financial market, where Lehman Brothers Holdings Inc filed for Chapter 11 bankruptcy, Bank of America brought Merrill Lynch and AIG were rescued by the federal government, investors thought that the central bank would lower the rates.

Ratings agency The Standard & Poor’s 500 index, posted its biggest one day percentage loss since re-opening after the September 11 disaster in 2001.

Read the full article in skynews

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