Gentle Ben

The Fed holds a key short-term rate at 5.25 percent and Ben Bernanke & Co. calm market's fears about a credit crunch and inflation.

In its statement, the Fed noted that "financial markets have been volatile in recent weeks, credit conditions have become tighter for some households and businesses, and the housing correction is ongoing."

The Fed also said that "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."

The Fed also indicated that it expects the economy "to continue to expand at a moderate pace over coming quarters, supported by solid growth in employment and incomes and a robust global economy."

Lets see who will be in control by the end of the week, DOLLAR BEARS or DOLLAR BULLS.