Fed to hold rates steady, cite inflation worries

(Reuters) - The central bank has held benchmark overnight borrowing costs steady at 5.25 percent for six consecutive meetings stretching back to August. It will announce its decision on rates around 2:15 p.m. EDT on Wednesday.

The statement from the rate-setting Federal Open Market Committee after its last meeting on March 20-21 was notable for dropping the bank's explicit bias toward higher rates, a move seen by some as a baby step toward a cut later in 2007.


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