US Federal Reserve holds interest rates steady

Policymakers at the US Federal Reserve have decided to hold interest rates steady. They have now kept the rate unchanged for five straight meetings.

The Fed wrapped up its second monetary policy meeting under Chair Kevin Warsh on Wednesday. They are keeping the benchmark interest rate between 3.5 and 3.75 percent. They said economic activity is expanding at a solid pace despite uncertainty around situations like the one in the Middle East.

Government figures show that inflation slowed sharply in June. However, Warsh said it is still higher than the Fed's goal. Three members of the committee voted against the decision. They wanted to raise the rate by one quarter of a percentage point.