Fed maintains interest rates at 5.25%

In a statement, it said: “Economic growth has moderated from its strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices. “Readings on core inflation have been elevated in recent months, and the high levels of resource utilisation and of the prices of energy and other commodities have the potential to sustain inflation pressures. However, inflation pressures seem likely to moderate over time, reflecting contained inflation expectations and the cumulative effects of monetary policy action...