Fed Leaves Rates Unchanged at 5.25%

by Patrick Lunsford, CollectionIndustry.com

The Federal Reserve?s Open Market Committee Wednesday announced that they would not be raising interest rates right now, but left the door open for more hikes in the very near future.

The move puts a pause on the near-maniacal rate hike spree that has been in force since the middle of 2004. Since then, the Fed has raised interest rates 17 consecutive times. Yesterday?s pause leaves the federal funds rate at 5.25%.

The encrypted statements from the Fed?s policymaking committee indicated that future rate hikes to stave off inflation were not out of the question.

?Inflation pressures seem likely to moderate over time,? said the committee, ?nonetheless, the committee judges that some inflation risks remain.?

Fed Chairman Ben Bernanke and the others said they would monitor both slowing economic growth and rising inflation and make a decision about future moves based on changes to the economic landscape.