Fed hold rates but concerned on inflation

The Federal Reserve left US interest rates unchanged Wednesday 9 May and acknowledged that the economy is slowing.

The benchmark interest rate on overnight loans remains at 5.25 percent -- the same level it has been since the Fed began its "pause" nearly a year ago.

"Core inflation remains somewhat elevated," the Fed said in a statement with its decision. "Although inflation pressures seem likely to moderate over time, the high level of resource utilization has the potential to sustain those pr