The US Federal Reserve (Fed) kept its benchmark interest rate unchanged at 3.5%-3.75% on Wednesday, extending its pause as the central bank weighs elevated inflation and uncertainty stemming partly from the conflict in the Middle East.

Axar.az reports, citing the US Federal Reserve, that the Federal Open Market Committee approved the decision by a 9-3 vote.

In its statement, the Fed said economic activity was expanding at a solid pace despite elevated uncertainty, while productivity growth and capital investment remained strong. It added that job gains had kept pace with the workforce and that the unemployment rate had changed little.

The central bank said inflation remained elevated relative to its 2% target, partly because of supply shocks that have pushed up prices in some sectors, including energy.

The Fed also said it would continue its policy of maintaining ample reserves in the banking system.