US Federal Reserve keeps interest rate unchanged

The US Federal Reserve on Wednesday kept its benchmark interest rate unchanged between the 0.00% - 0.25% range during a two-day meeting.

"Following a moderation in the pace of the recovery, indicators of economic activity and employment have turned up recently, although the sectors most adversely affected by the pandemic remain weak," the Federal Open Market Committee (FOMC) removed from last month's statement.

It, instead, used "Amid progress on vaccinations and strong policy support, indicators of economic activity and employment have strengthened. The sectors most adversely affected by the pandemic remain weak but have shown improvement."

While the central bank said in its March meeting that inflation continues to run below 2%, it now said "Inflation has risen, largely reflecting transitory factors."

The FOMC also removed employment and inflation as indicators adversely impacted by the coronavirus pandemic, but kept the health crisis continues to weigh on the economy, and risks to the economic outlook remain.

The Fed also assured that it will keep the federal funds rate unchanged until labor market conditions reach levels of maximum employment and inflation rise to 2% and is on track to moderately exceed that level for some time.

The Fed also noted it will continue its asset purchase program to relieve the world's largest economy, in which the central bank buys at least $120 billion of bonds every month.