The Fed kept the benchmark interest rate unchanged for 7 times after the first does not cut interest rates.

Sharp increase in the risk of inflation pressure, the U.S. Federal Reserve 25, decided to keep the federal funds rate, which commercial banks overnight call rate unchanged. .This is also the Federal Reserve from cutting interest rates seven times last year's September rate cut after the first change in policy. .<P> Compared with the previous statement, the Fed statement issued the same day the risk was increased vigilance on inflation. .Statement that the U.S. economic downturn and inflation upward facing two risks, downside risks remain in the economy and "eased" the case, inflation risks are increasing. .<P> Fed stressed that it will continue to monitor economic and financial developments and take action when necessary to promote sustained economic growth and maintain price stability. .</ P> <P> the Federal Reserve meets today to discuss interest rates, is expected to keep interest rates unchanged </ P> <P> rally as oil prices run wild, to the U.S. Federal Reserve Chairman Ben Bernanke is a big challenge, .He must not raise interest rates to inflation under the premise of efforts to cool. .This result could undermine the credibility of the Fed. .<P> London Lombard Street Research analyst Stan said, "the Fed itself into a corner, now is losing credibility." Fed is expected to be held today at the local meeting on monetary policy to keep interest rates unchanged at 2% .. .<P> Now, the United States in May uncomfortably high inflation rate of 4.2%, under normal circumstances, the Fed should be inclined to raise interest rates. .But the current problem is that the economy remains fragile, and the property market remained depressed, while the manufacturing sector also slowed. .Joseph, chief analyst at Merck venture capital firm, said: "The Fed is facing the dilemma is that although the economy did not collapse, but no definite signs of rapid recovery." Fed "to raise interest rates and caught in the dilemma of keeping interest rates unchanged .choice among the former is that it should do, which needs to be done. "<P> Bernanke in a speech earlier this month, trying for a way to limit the price pressures - and he stressed the depreciation of the dollar .inflationary effect. .Although his remarks pushed the dollar higher and temporarily ease the oil price rally, but several days later that this trend took a dramatic turn, because the ocean side of the European Central Bank President Jean-Claude Trichet said the market could raise rates as early as July. .This prompted some investors to speculate that the two may be there is some discord between the central bank, but both sources have denied this speculation. .On the other hand, Bernanke and Trichet are facing common problem is that most of the inflationary pressures from abroad. .According to JP Morgan research, global oil consumption last year, the share of emerging markets more than 50%. .Curb oil consumption in emerging markets, the pace has been slower, but this situation will change. .JP Morgan expects global oil demand will decline for the first time since 1993. .Just last week, the Chinese retail gasoline and diesel prices up 18% increase, a move, or help to reduce demand. .<P> Tight global oil supply, but now, even if it might not be enough to price pressures in the United States reduced to the level the Fed would like to see. .If the high inflation stubborn, Bernanke can not just "on paper", and Stan this described as "thunder and no rain." Stein said in recent weeks, Bernanke and other Fed officials verbally tough, but the market has lost .control and digested several times the expected rate hike cases, they move just a sign of weakness, the Federal Reserve Ben Bernanke has shaken the reputation as an inflation fighter. .<P> Stein said: "When Jean-Claude Trichet said, 'We will raise interest rates', the market's answer is 'We believe you'. But Bernanke said the same words, the market will ask, 'Why should we believe you' .. "</ P>.