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US Central Bank Holds Interest Rates Steady


The U.S. central bank decided to hold interest rates steady Tuesday.

In a note explaining the decision, U.S. Federal Reserve officials said inflation remains the biggest risk to economic growth. They said the risk of an economic downturn has increasesd "somewhat."

The Federal Reserve is the agency in charge of preventing inflation, maintaining stable prices, and maximizing employment.

It can cut interest rates to stimulate the economy, or raise them to fight inflation.

Tuesday's decision means the Fed has now kept the key interest rate steady at 5.25 percent for more than one year.

Some information for this report was provided by AFP, AP and Reuters.

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