US Fed holds rates unchanged, still sees 'gradual' hikes

WASHINGTON: The US Federal Reserve kept the benchmark interest rate unchanged Wednesday in its first policy meeting since President Donald Trump took office, and said it still expects to need only gradual rate increases.

While striking an optimistic tone about the outlook for the economy, the central bank statement gave no hint of increased concern about possible spending or tax policies by the Trump administration that might create pressure to hike rates faster.