The Fed monetary policy statement also expressed confidence in its economic oulook, saying business activity had been expanding at a moderate rate and employment growth had averaged strongly in recent months.
"In view of realized and expected labour market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1-1/2 to 1-3/4 per cent.
"The stance of monetary policy remains accommodative, thereby supporting strong labour market conditions and a sustained return to two per cent inflation," the FOMC said.
"On a 12-month basis, both overall inflation and inflation for items other than food and energy have moved close to two per cent. It is expected to run near the Committee's symmetric two per cent objective over the medium term."
The Fed also said while growth of household spending moderated from its "strong fourth-quarter pace, business fixed investment continued to grow strongly."
As per official data, inflation in the US rose 1.9 per cent in the 12-month period up to March.
The country's unemployment rate is currently at a 17-year low of 4.1 per cent.
Following a prolonged period of accomodation after the financial crisis of 2007-8 that impacted globally, the US Fed began its tightening cycle of rate increases in December 2015.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)