Mubasher: The US Federal Reserve (Fed) left interest rates unchanged, signalling it will not pull back until seeing sustained progress lowering inflation from multi-decade highs.

The Federal Open Market Committee (FOMC) has maintained the target range for the federal funds rate between 5.25% and 5.50%, according to a statement.

“The committee judges that the risks to achieving its employment and inflation goals have moved toward better balance over the past year. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks,” FOMC highlighted.

The statement said policy would depend on incoming data and that officials “will continue reducing” the Fed's bond holdings.

While economic activity has remained solid, US monetary policymakers judged risks to their 2% inflation and full employment goals have moved toward balance in recent months.

In a statement on Wednesday, Jerome Powell, Chairman of the Fed, commented: “We do not make decisions about future meetings until we get there.”

Powell added: “It is going to be not just the inflation readings. It is going to be the totality of the data, what is happening in the labour market, what is happening with the balance of risks, what is happening with the forecasts, what is happening with growth. You are looking at all of that.”