US Fed: Weak growth temporary; gradual rate hikes on the cards

Washington

THE US Federal Reserve held interest rates steady on Wednesday, while also downplaying recent weak economic growth, a signal it will remain on course for gradual rate hikes.

The wording of the Fed's policy statement strengthens the prospect of two more increases in the benchmarket lending rate this year, likely at the June and September meetings. The Fed's policy-setting Federal Open Market Committee voted unanimously to keep the federal funds rate in a range of 0.75-1.0 per cent, just as most analysts had expected.