WASHINGTON — The Federal Open Market Committee decided in itsmeeting today to maintain the federal funds target rate at 5.25%even while acknowledging the impact of the housing breakdown.

“Financial markets have been volatile in recent weeks, creditconditions have become tighter for some households and businesses,and the housing correction is ongoing,” the FOMC statement read.“Nevertheless, the economy seems likely to continue to expand at amoderate pace over coming quarters, supported by solid growth inemployment and incomes and a robust global economy.”

Additionally, the committee stated that economic growth wasmoderate over the first half of the year and, while “readings oncore inflation have improved modestly in recent months…a sustainedmoderation in inflation pressures has yet to be convincinglydemonstrated.”

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