The Federal Open Market Committee (FOMC) announced today that it is holding the Fed Funds rate steady at 2.0 percent. This is the overnight rate at which banks loan money to one another, and can affect the mortgage rates for adjustable rate mortgages and home equity lines of credit, as well as the interest rates on credit cards and consumer loans.

The pause was widely anticipated by financial markets, which were focused more on the language of the announcement to see what degree of concern the Fed has over rising inflation versus a struggling economy.

Quicken Loans Chief Economist Bob Walters says the FOMC made it clear that inflation fears currently trump those of a wilting economy.

"The Fed's decision to maintain the current Fed Funds Rate is no surprise to anyone," says Walters. "The Fed has been saying for some time now that it wants to keep a close eye on inflation while still helping the economy recover from the credit crunch. Inflation fears are continuing to grow as the dollar continues to lose ground. Prices on everyday items are continuing to climb and gas and oil prices are at record highs.

"To help abate these indicators of inflation, Chairman Bernanke hinted as recently as this month that Fed Funds Rate increases may be coming in the near future. While it would help with inflation, these actions will most definitely also increase the cost of obtaining financing," he added.