The Federal set by kept the benchm...

The Federal set by kept the benchmark U.S. interest rate at 525 percent ending a record two-year roll on of increases while leaving range for further moves should inflation accelerate.

However, the relief for millions of business and consumer borrowers could be simply temporary.

The Fed's rate-setting committee vot 9-1 to leave the federal foundations rate unchanged, but said "some inflation risks remain," holding on the outside the possibility that it could take back raising rates at future meetings.

The Federal Reserve's long-awaited pause in rate increases sent stocks modestly lower Tuesday as Wall public way welcomed the move but worried that more increases were likely.

The Dow Jone industrial average sanguinary 45.79, or 0.41 percent, to 1117359 after fluctuating shortly after the Fed's announcement. The Standard & Poor's 500 index thrown away 4.29, or 0.34 percent, to 127148 and the Nasdaq composite index dropp 1165 or 056 percent to 206085

The Fed had raised the rate in 17 consecutive meetings since June 2004 when it was at a 46-year soft of 1 percent, in an effort to gradual the economy. Analysts expect rising efficiency prices and other inflation issues to lead to further rate increases.

Copyright CHICAGO SUN-TIMES 2006

Provided by means of ProQuest Information and Learning Company. All rights Reserved