The U.S. Federal Reserve (Fed) on Wednesday kept its key interest rate steady for a third consecutive meeting, citing economic cooling which it hopes will dampen a worrisome rise in inflation. As expected, the central bank's policy-setting Federal Open Market Committee voted to keep its federal funds rate at 5.25 percent. The rate has been at that level since late June, when the Fed raised rates for a 17th consecutive time in two years. The Fed vote was 10 to 1, with one member arguing for a quarter-point increase to fight inflation. The decision to keep the funds rate unchanged means that the prime lending rate-the benchmark for millions of consumer and business loans-will remain at 8.25 percent.
