Fed Holds Interest Rates Steady

The Fed held the benchmark interest rate steady at 5.25% today in an unsurprising statement that prompted little reaction from the market. The unanimous vote reflects concerns about a faltering housing market, slowed growth, and persistent fears about core inflation, which the Fed continues to consider "somewhat elevated."

Today's statement left most market watchers unperturbed, even after March rumors that borrowing rates might fall made tremors. "It is kind of a yawner," one economist said. The statement, barely edited from last quarter, again stressed "moderate" growth and pricing concerns, suggesting the Fed will likely stay the course in August. (More Federal Reserve stories.)