Fed, unbowed by financial turmoil, leaves rate unchanged, but says it remains vigilant

Fed, unbowed by financial turmoil, leaves rate unchanged, but says it remains vigilant.

By JEANNINE AVERSA , Associated Press Last update: September 16, 2008 - 4:04 PM Featured comment Close comment OIL COMPANY PROFITS Based on sales, oil company profits are about average on a percentage basis as all other American companies. How do oil companies set … read more prices anyway? The New York Mercantile Exchange is the price discovery mechanism for all oil products, not oil companies. Based on World Supply/Demand. Close comment Add your own comment Register or log in to comment 10 comments | See all Hide reader comments Circulation Promo Print this storyPrint this story E-mail this storyE-mail this story Save to del.icio.usSave to del.icio.us Share on newsvineShare on newsvine Share on DiggShare on Digg Minnesota business by the numbers See Minnesota's top earning companies, CEOs and non-profits * Star Tribune 100 * Executive compensation * Non-profit 100 Related Content * AIG shares fall as it fights for a lifeline * Barclays seen close to deal for Lehman assets * Oil prices sink below $92 on Wall Street tumult * Big fall in energy pushes consumer prices down * Kroger profit rises 3.4 percent on sales growth * Home Depot plans price cuts to bring back shoppers * Best Buy 2Q profit slides 19 percent More from Business * Treasurys fall after Fed stands pat on rates * FDA blocks imports from India's generic drug giant * Goldman posts worst quarter since going public * Stocks stabilize, but critical insurer AIG teeters * McClatchy to cut 1,150 jobs, 10 pct of work force WASHINGTON - Showing a tough love stance for now, Federal Reserve Chairman Ben Bernanke and his colleagues decided to keep a key interest rate steady Tuesday. They acknowledged stresses in financial markets have grown, though, and hinted they stood ready to lower rates if needed. Wreckage on Wall Street in recent days did not force the Fed — as some thought possible — to reverse course and cut rates. The Fed left its key rate at 2 percent for the third straight meeting. It marked the first meeting this year the Federal Open Market Committee, which sets interest rate policy, agreed unanimously with a decision. The prime lending rate for millions of consumers and businesses stayed at 5 percent. The prime rate applies to certain credit cards, home equity lines of credit and other loans. The Fed's key rate and the prime rate are at four-year low