The US Federal Reserve has kept interest rates unchanged but said inflation likely would rise this year, bolstering expectations borrowing costs will continue to climb under incoming central bank Chief Jerome Powell.
Citing solid gains in employment, household spending and capital investment, the Fed said it expected the economy to expand at a moderate pace and the labour market to remain strong in 2018.
Following a two-day policy meeting, the central bank said in a statement that inflation on a 12-month basis is expected to move up this year and to stabilize around the Fed’s 2 percent target over the medium term, the last under Fed Chair Janet Yellen.
