Fed Keeps Rates On Steady Course

At a time of high political uncertainty, the Federal Reserve decided Wednesday the best course for the nation’s monetary policy on Wednesday was to leave interest rates exactly where they have been for the past six months.

It will keep its target for a key short-term interest rate unchanged at 6.5 percent.

The federal funds rate, the interest that banks charge each other, has been at that level since May 16 when the Fed increased rates for the sixth time in an effort to slow economic growth and keep inflation under control.

The Dow Jones industrial average closed the day up 26.54.