US Fed keeps interest rate unchanged

Washington: The US Federal Reserve Bank has kept the interest rate unchanged for the fourth consecutive time after its customary two-day meeting, saying the “economic outlook is uncertain” despite the economy was “expanding at a solid pace”.

The Fed has kept the rate at 5-1/4 to 5-1/2 per cent.

“The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward two per cent,” the Fed said on Wednesday in a statement after the meeting of the Federal Open Market Committee, the top decision-making body.