Fed holds US rates steady, stays inflation wary

WASHINGTON, Jan 31 (Reuters) The US Federal Reserve held benchmark interest rates steady at 5.25 percent on Wednesday for a fifth straight meeting, while maintaining a warning on the risk of inflation.

The widely expected decision by the central bank's Federal Open Market Committee keeps the overnight federal funds rate target at the level it hit in June after 17 straight quarter-percentage point increases.

In a statement outlining its decision, the Fed indicated it continues to focus on inflation risks.

Reuters SBA VP0126