Fed holds rates steady; balanced risks By Rachel Koning
The Federal Reserve held key borrowing rates at 40-year lows Tuesday, a decision largely anticipated by the financial markets. The central bank also said it now sees risks in the economy evenly balanced between inflation and continued weakness, shifting its view after suggesting for 15 months that downside risks prevailed for the U.S. economy. The federal funds rate, which is used to set the prime rate and other interest rates, remains at 1.75 percent, a level put in place with the Fed's last rate cut, in December.
The Federal Reserve held key borrowing rates at 40-year lows Tuesday, a decision largely anticipated by the financial markets. The central bank also said it now sees risks in the economy evenly balanced between inflation and continued weakness, shifting its view after suggesting for 15 months that downside risks prevailed for the U.S. economy. The federal funds rate, which is used to set the prime rate and other interest rates, remains at 1.75 percent, a level put in place with the Fed's last rate cut, in December.