As Expected, Fed Leaves Interest Rates Unchanged

ASHINGTON (Reuters) - Federal Reserve policymakers opted to keep U.S. interest rates steady at four-decade lows, trying to keep an unevenly paced recovery rolling with cheap credit for consumers and businesses.
Policymaking members of the Federal Open Market Committee voted unanimously to keep its trend-setting federal funds rate for overnight loans between banks at 1.75 percent. The more symbolic discount rate was also unmoved at 1.25 percent.

In the statement, policymakers cited an "uncertain" outlook for final demand and said risks remained balanced between inflation and recession. This indicated concern about recent soft economic data including the April unemployment rate which was the highest in more than 7-1/2 years. Financial markets fully anticipated steady interest rates and many analysts now say it is unlikely the Fed will begin raising rates before August at the earliest.