Fed halts string of interest rate rises

WASHINGTON (Reuters) – The U.S. Federal Reserve on Tuesday
halted a more than two-year string of interest-rate rises,
holding its benchmark rate steady while it gauges whether a
slowing economy will keep inflation in check.

The central bank’s policy-setting Federal Open Market
Committee voted to keep the federal funds rate target at 5.25
percent, pausing a cycle that had taken the rate steadily
higher in 17 successive hikes since mid-2004.

Richmond Fed President Jeffrey Lacker voted against the
move, the Fed said.

Several recent economic indicators have pointed to
moderating growth, led by a cooling housing market, but wages
and prices continue to rise and the Fed’s pause could be
temporary if inflation proves tenacious.