Fed Leaves Interest Rate at 5.25 Percent

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The Federal Reserve left a key interest rate unchanged on Wednesday as falling energy prices helped to restrain inflation pressures, the Associated Press reports.

Federal Reserve Chairman Ben Bernanke and his colleagues issued a brief announcement saying they would leave the federal funds rate, the interest that banks charge each other, at 5.25 percent.

The decision represents a break for borrowers. It means that banks’ prime lending rate, the benchmark for millions of consumer and business loans, will remain at 8.25 percent.

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