Fed leave policy rate unchanged at 5.25%

-Fed only have two options now, leaving rate unchanged or lowering interest rate -inflation moderate, core inflation dropped from 2.4% in Feb to 2% in April. -subprime issue has not spreaded into broader economy, and subprime potential victims (around 30 million) only represent a small portion of whole population (400 mil). No season to put the interest of minority in front of that of majority -Economy is still doing ok, thought GDP is low -No reason to lower interest