FED LEAVES INTEREST RATES ALONE

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"In the view of theFed, the economy is basically on track," says economics correspondent Adam Zagorin. The Federal Reserve decided to leave the key federal funds rate unchanged at 5.75 percent, despite analysts' expectations this summer that a rate cut in July (the first in three years) might herald a succession of measures to stimulate the economy. Zagorin saysGreenspanmay push for further rate cuts in the fall, "but with a healthy 2.5 growth rate expected for the remainder of the year, he's currently not under much pressure to do so."