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Economic Figures

Fed Holds Interest Rates at 5.25 Percent

Wednesday, January 31, 2007 5:44:13 PM
By JEANNINE AVERSA

WASHINGTON (AP) - Pointing to a revved-up economy and encouraging news on inflation, the Federal Reserve held interest rates steady on Wednesday and extended a half-year breather for U.S. borrowers. Wall Street surged in response.

Fed Chairman Ben Bernanke and his central bank colleagues left an important interest rate unchanged at 5.25 percent, the fifth straight meeting without budging the rate. The decision was unanimous.

On Wall Street, stocks rose sharply. The Dow Jones industrials gained 98.38 points to close at 12,621.69 in preliminary data.


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