Federal Reserve Leaves Key Rate Unchanged At 2 Percent

WASHINGTON (AP) — The Federal Reserve has decided to leave a key interest rate unchanged, bringing an end to a string of consecutive rate cuts aimed at keeping the country out of a deep recession.

The central bank announced Wednesday that it was keeping the federal funds rate, the interest rate that banks charge each other, at 2 percent, marking the first time in 10 months that the Fed has failed to reduce interest rates at one of its regular meetings.

The Fed is confronted with the twin perils of a possible recession and rising inflation pressures, stemming from this year’s surge in oil and food prices.