Fed holds interest rates steady

The US Federal Reserve on Tuesday held benchmark interest rates steady at 5.25 percent for a fourth straight meeting, while renewing a warning that risks from inflation remain.
The widely expected decision by the central bank''s Federal Open Market Committee keeps the overnight federal funds rate target at the level it hit in June after 17 straight quarter-percentage point increases.
In a statement outlining its decision, the Fed said it continues to focus on inflation risks, holding out the prospect that interest rates may need to move higher in coming months, even as it took note of the "substantial" cooling in the US housing market.
"Readings on core inflation have been elevated, and the high level of resource utilisation has the potential to sustain inflation pressures," the Fed said. "However, inflation pressures seem likely to moderate over time."