|
 WASHINGTON (AP) - The Federal Reserve held interest rates steady on Wednesday and raised the possibility they could be cut in the months ahead, igniting a rally on Wall Street where investors are thirsting for a reduction. Fed Chairman Ben Bernanke and his central bank colleagues left an important interest rate unchanged at 5.25 percent, the sixth straight meeting without budging the rate. The decision was unanimous.
On Wall Street, stocks rose sharply. The Dow Jones industrials closed up 159.42 points at 12,447.52 in the index's biggest one-day gain since July 24.
The Fed's decision means that commercial banks' prime interest rate — for certain credit cards, home equity lines of credit and other loans_ stays at 8.25 percent. The Fed has left rates alone since August, giving borrowers time to catch their breath after two years of steadily rising rates.
|