VOA慢速英语20060519a

ECONOMICS REPORT - U.S. Inflation Rises More Than Expected in AprilBy Mario Ritter

Broadcast: Friday, May 19, 2006

I'm Steve Ember with the VOA Special English Economics Report.

The cost to borrow money is the interest rate. For many years, the United States central bank has used its target interest rate as a tool to fight inflation.

The idea behind this policy is that higher interest rates will mean less borrowing. Less borrowing will mean less spending. And less spending will mean less demand. The aim is to reduce pressures that raise prices for goods, materials and labor¹.


Federal Reserve Chairman Ben Bernanke

Last week, the Federal Reserve again raised its target interest rate. The federal funds rate is what banks charge other banks to borrow money overnight. These short-term loans come from balances held in the Federal Reserve.

The Federal Open Market Committee at the bank increased the target rate by twenty-five basis points. A basis point is one one-hundredth of a percentage point. The target is now five percent, the highest since early two thousand one.

The committee is led by Ben Bernanke, the new chairman of the Board of Governors of the Federal Reserve.

This was the sixteenth increase in a series that began in two thousand four. Markets expected it. But many investors² were hoping for a clear signal that this would be the last one at least for now.

In its statement, the committee said economic growth has been strong so far this year. It said a slowing housing market and rising interest rates and energy prices have largely contained inflation pressures. But the committee also said that higher prices for energy and materials could add to those pressures in the future.

To deal with inflation risks, the committee said some further policy firming may yet be needed. Policy firming is the term for raising rates. But the statement added that the extent and timing³ will depend on further information about the economy.

On Wednesday, the Labor Department announced that the consumer price index rose six-tenths of one percent in April. Experts thought this important measure of inflation would increase no more than five-tenths of one percent.

The increase was the biggest in three months. And it showed that the effect of higher energy prices might be spreading. Higher energy costs push up prices for transportation and many products.

Economists⁴ are divided on what the report will mean for interest rates. The open market committee meets next for two days starting June twenty-eighth.

This VOA Special English Economics Report was written by Mario Ritter. Read and listen to our reports at www.unsv.com. I'm Steve Ember.

1 labor   

n.劳动，努力，工作，劳工；分娩；vi.劳动，努力，苦干；vt.详细分析；麻烦

参考例句：

• We are never late in satisfying him for his labor.我们从不延误付给他劳动报酬。
• He was completely spent after two weeks of hard labor.艰苦劳动两周后，他已经疲惫不堪了。

2 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

3 timing   

n.时间安排，时间选择

参考例句：

• The timing of the meeting is not convenient.会议的时间安排不合适。
• The timing of our statement is very opportune.我们发表声明选择的时机很恰当。

4 economists   

n.经济学家，经济专家( economist的名词复数 )

参考例句：

• The sudden rise in share prices has confounded economists. 股价的突然上涨使经济学家大惑不解。
• Foreign bankers and economists cautiously welcomed the minister's initiative. 外国银行家和经济学家对部长的倡议反应谨慎。 来自《简明英汉词典》