FED HOLDS FEDERAL FUNDS RATE AT 5.25 PERCENT

The Federal Reserve’s Open Market Committee yesterday, decided to maintain the target for the federal funds rate at 5.25 percent. This is the second consecutive month the committee opted not to raise the target rate, which steadily increased from 1 percent to 5.25 percent between June 2004 and July 2006. The federal funds target rate is the interest rate charged by banks when they borrow funds “overnight” from each other. – San Diego hotels