WASHINGTON -- The Bush administration gave a curt nod of approval yesterday to the Federal Reserve's current policy of keeping short-term interest rates unchanged, but it warned that Fed officials should be prepared to ease credit again to sustain economic recovery.

Michael Boskin, chairman of the President's Council of Economic Advisers, said it makes sense to adopt a "wait-and-see attitude" on rates for a "very short period" to see if the recovery is as robust as Fed policymakers are forecasting and to make sure inflation is under control.

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