Fed maintains interest rates amid inflation concerns

Improved employment figures, increased household spending and capital investment are driving expectations at the central bank for the economy to expand at a moderate pace and the labour market to remain strong, according to Reuters. In a statement following the two-day policy meeting, the Fed said "inflation on a 12-month basis is expected to move up this year and to stabilise" around its 2% target over the medium term. Policymakers at the Fed have been buoyed by signs in recent months that the economy is picking up speed, in addition to a fall in the unemployment rate from a 17-year ...