The Fed's released its interest rate decision on Wednesday. The Fed kept its interest rate unchanged at 0.25% - 0.50% as widely expected by analysts.

The Fed said in its statement that the U.S. economic activity slowed, while the labour market continued to improve.

According to the Fed household spending rose moderately, despite higher real income.

Inflation remained low due to lower energy prices and falling prices of non-energy imports, the Fed noted.

The Fed expects inflation to rise to 2% over the medium term.

The Fed also said that it continued to closely monitor inflation indicators and global economic and financial developments, adding that an interest rate hike will depend on the incoming economic data.

Only Kansas City President Esther George voted for an interest rate hike by 0.25%.