Ben Bernanke, the head of the Federal Bank today signalled that concerns about inflation and a slight recovery of the economic markets make it unlikely for more rate cuts.
He said that over the past few months, the government’s stimulus package and a succession of rate cuts would provide better economic conditions.
The Federal Reserve’s statement sent crude oil $3 lower, while the dollar was close to reaching a three month high.
Mr Bernanke went to state that Federal Reserve would be monitoring the dollar, because as the dollar weakens against other currencies foreign investors buy goods such as oil, as oil is priced in dollars.
US crude oil prices fell by $3.45 to $124.31 a barrel, its lowest level since May 15th.