Fed Leaves Rates Unchanged

Washington, DC, June 25, 2008--The Federal Reserve left its key short-term fed funds interest rate unchanged Wednesday at 2 percent, the first time it held rates steady in the past nine months.

The Fed cited the potential dangers arising from increasing inflation pressures caused by rising oil and other commodity prices.

The fed funds rate is an overnight bank lending rate used as a benchmark to set the rates that consumers pay for many types of loans as well as the prime rate used to peg the rates paid on certain business loans.