Fed leaves rate unchanged
Washington: The Federal Reserve on Wednesday left its short-term interest rate unchanged for a second consecutive meeting. However, it said that there was a possibility that further rate hikes could be forthcoming to fight inflation.

Some analysts say that the Fed is done with raising rates and might even start easing next year -- a view reinforced by recently falling energy prices and a cooling of the housing market.

Others are not so sure and say inflation is still too high for comfort and more hikes might be needed.

The statement by the Fed's policymaking Open Market Committee explaining its decision to stand pat acknowledged that "inflation pressures seem likely to moderate over time" because of the slowing economy and previous rate boosts.

But "some inflation risks remain," the Fed said, and the need for further rate hikes "will depend on the evolution of the outlook for both inflation and economic growth."

The Fed's action disappointed the financial markets slightly, which had hoped for a signal that the campaign to raise interest rates might be over and that the next step might be to reduce rates in the interest of generating economic growth.

The Dow Jones industrial average, which had been up about 80 points on the day, immediately gave back 30, although it gained most of that back before the close.
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Crude drops to $61/bl-6-month low
London: Oil prices fell to new six-month lows on the back of rising winter fuel stocks and reducing concern over Iran.
US crude dropped 89 cents at $60.77 a barrel at 1742 IST after touching $60.61, the lowest since March 21.

Oil has slumped over $17 from its July record high of $78.40 in its steepest decline for 15 years.

London Brent was down 81 cents at $61.36.
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