WASHINGTON: The US Federal Reserve held interest rates steady for a fourth consecutive meeting on Wednesday, forecasting higher inflation and cooler growth this year as President Donald Trump`s tariffs begin to take hold and geopolitical uncertainty swirls.

The Fed kept the benchmark lending rate at a range between 4.25 per cent and 4.50pc at the end of its twoday meeting, with officials penciling in two rate cuts this year, similar to earlier projections.

The move is likely to draw the ire of Trump, who has repeatedly pressured the independent central bank for rate reductions.-AFP