WASHINGTON (AP) -- Borrowing costs are likely to hold steady as the Federal Reserve tries to avoid both stirring inflation and stifling a fragile economy.Fed Chairman Ben Bernanke and his colleagues open a two-day meeting Tuesday afternoon, where they will put together their most up-to-date assessment of the economy's outlook and decide the best course on interest rates.
The Fed is almost certain to hold its key interest rate steady at 2 percent when it wraps up its session on Wednesday. If that's the case, the prime lending rate for millions of consumers and businesses would stay at 5 percent. The prime rate applies to certain credit cards, home equity lines of credit and other loans.
Looking ahead, the Fed probably will go further in highlighting inflation risks but won't go as far as to signal a rate increase at the Fed's next meeting on Aug. 5, analysts said.
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