The Federal Reserve held interest rates steady on Wednesday, awaiting further data on the path of inflation.

In a 10-2 decision, the US central bank said it would maintain its benchmark interest rate within the current 3.75 percent and 4.00 percent range, while acknowledging that inflation "remains elevated," upgrading its assessment of the economy and hinting that further rate hikes may be coming depending on inflation.

"The accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee's 2 percent goal," the rate-setting Federal Open Market Committee said in its latest policy statement. "The Committee will deliver price stability."

Fed Governor Lisa Cook, currently targeted by US President Donald Trump for removal from the central bank, dissented in favour of a quarter-percentage-point rate hike, as did Cleveland Fed President Beth Hammack, a consistently hawkish voice who also dissented in July for the same reason.

The Fed's latest policy statement is a notable change from the September 15-16 meeting, with a hint of the sort of forward guidance Fed Chairman Kevin Warsh has said he wants to avoid.

The Fed's assessment of the US economy was upgraded to "strong" from the "solid" expansion seen as of the September meeting, while investment was still viewed as robust and job gains were keeping pace with the workforce. (Reuters)



Edited by Robert kemp