Iowa Senator expects interest rate to hold

Iowa Senator Chuck Grassley expects interest rates to remain the same following today’s final meeting of the year of the Federal Reserve Board. Most economists expect board members to keep interest rates steady after last month’s half-percentage-point cut and Grassley agrees.Grassley is the incoming chairman of the powerful Senate Finance Committee. He predicts there will be a bit of a power shift as there’s greater emphasis placed on coordinating acts in fiscal policy with monetary policy. Grassley, a republican, says he wants to reduce taxes, especially those taxes that encourage investment in things like manufacturing.Analysts say with interest rates already at a four-decade low of one and a-quarter percent, and economic data mixed, the central bank won’t make any moves at this time. In another bit of economic news due today, the U-S Commerce Department will release the report on wholesale inventories in October. Economists look for an increase of two-tenths of a percent.