California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

The Federal Reserve left its main interest rate at 2 percent, rebuffing calls by some on
Wall Street for a cut.

In its statement, the Fed said: "Strains in financial markets have increased significantly
and labor markets have weakened further. Economic growth appears to have slowed
recently, partly reflecting a softening of household spending. Tight credit conditions, the
ongoing housing contraction, and some slowing in export growth are likely to weigh on
economic growth over the next few quarters."

``Downside risks to growth and the upside risk to inflation are both of significant concern,''
as identified by the Federal Open Market Committee in its statement. `` In addition, the
Committee identified that it will monitor economic and financial developments carefully
and will act as needed to promote sustainable economic growth and price stability.''

I am Tim Johnson and this has been the California Business Minute.