The Federal Reserve held interest rates steady on Wednesday after price increases ticked up over the last three months, suggesting inflation may still have some life in it.

Central bankers held rates at a range of 4.25 to 4.5 percent, in line with market expectations. The decision was unanimous among the voting members of the Federal Open Market Committee (FOMC), the panel of Fed officials responsible for setting interest rates.

The CME Fed Watch prediction algorithm based on futures contract prices had the probability of a hold in January at 99.5 percent on Wednesday.

“The Federal Reserve has decided to pump the brakes … with inflation lingering at around 3 percent and strong jobs numbers in recent months,” Joe Gaffoglio, head of Mutual of America Capital Management, wrote in a commentary.

The pause in rate reductions comes as President Trump has been elbowing Fed Chair Jerome Powell to keep cutting rates to spur economic growth, reviving the tensions between the White House and the Fed that were a hallmark of Trump’s first........

© The Hill