Fed leaves rates alone again

Bernanke & company hold at 5.25 percent, say economic growth 'moderate'; investors see no rate hikes ahead.

NEW YORK (CNNMoney.com) -- The Federal Reserve held a key interest rate steady Wednesday and indicated again that it was concerned about slower growth as well as inflation - an encouraging signal to investors that the central bank will not raise rates any time soon.

The Fed, as widely expected, kept its target for the federal funds rate, an overnight bank lending rate that affects credit card, home equity and other loan rates, at 5.25 percent.

It was the seventh straight time that Fed Chairman Ben Bernanke and his fellow policy-makers held steady after raising rates 17 straight times, through June 2006, in a bid to fight inflation.

In its statement, the Fed noted that economic growth slowed early this year but indicated it's also still worried about inflation, saying "the predominant policy concern remains the risk that inflation will fail to moderate as expected."

Source: http://www.cnn.com