Federal Reserve policymakers were unanimous in holding steady the over-night bank lending rate at their Feb. 4-5 meeting, deciding a "wait-and-see" stance would be prudent, minutes of the session showed Friday.

The Federal Open Market Committee's 10-0 vote left the target for the federal funds rate at 5.25 percent. FOMC members also retained their tilt - or bias - in favor of taking action between meetings to raise short-term interest rates in the event inflation suddenly surged."Most members thought that inflation likely would remain contained for some period ahead and that any strengthening in inflation pressures probably would be gradual allowing the committee to respond in a timely manner," minutes from the meeting showed.

Several FOMC members also warned an interest rate increase "was not generally anticipated in financial markets, and a move at this time could have exaggerated repercussions."

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By changing the interest rates it controls, the Fed's actions translate into lower or higher borrowing costs on everything from credit cards to mortgages and business loans - and directly influence economic activity, though often with a lag of many months.

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