No riseat the US Federal Reserve meeting this morning, our time.The Open Market Committee kept the key Federal Funds rate on hold at 5.25%, judging that the economy was still on an even keel.It was the 9th time rates were left on hold.The Fed did mention the phrase 'downside risks' in its statement in connection with the recent turmoil in financial markets over subprime mortgages and securities.

But that wasn't enough to change its policy stance. Markets did fall after the statement, and then rise to close cautiously positive.While some in the markets would have wanted to see a cut, the Fed isn't there to bail out investment banks and others when they make mistakes.

That's what Al Greenspan did after the tech and net crash in 2001 - and the world is still paying the cost today from the years of easy credit and the forgetting of risk.

Despite the hysterical rants of some people like US financial commentator, Jim Cramer, that the Fed 'must do something' like 'opening the discount window' there's no solid evidence that the subprime mess is damaging the wider US economy.

Housing is hurting and the Fed acknowledged that and the credit crunch.Here's its statement:"The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent."Economic growth was moderate during the first half of the year. "Financial markets have been volatile in recent weeks, credit conditions have become tighter for some households and businesses, and the housing correction is ongoing.

"Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters, supported by solid growth in employment and incomes and a robust global economy."Readings on core inflation have improved modestly in recent months. However, a sustained moderation in inflation pressures has yet to be convincingly demonstrated. "Moreover, the high level of resource utilization has the potential to sustain those pressures.Although the downside risks to growth have increased somewhat, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. "Future policy adjustments will depend on the outlook for both inflation and economic growth, as implied by incoming information."