US Federal Reserve in its policy announcement made on Wednesday has left the key rate unchanged at 0-0.25 per cent.

The US economy is growing moderately after a winter swoon and likely strong enough to support an interest rate increase by the end of the year, U.S. Federal Reserve officials indicated on Wednesday.

Key Points

After contracting in the first quarter, the economy is now on track to grow between 1.8 per cent and 2.0 per cent this year, according to the US central bank's latest policy statement and new projections issued by Fed policymakers.

The Fed also said labour markets continued to improve, though with unemployment expected to be slightly higher at the end of the year than previously forecast in March. Inflation remains low but is expected to gradually rise to its 2 per cent target over the medium term.

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