US Federal Reserve holds interest rates steady as inflation ticks up

Fed announces it will keep interest rates at 5.25% to 5.5% as rate of inflation remains above target of 2%

The Federal Reserve announced on Wednesday that it is holding interest rates steady at 5.25% to 5.5%, their highest level in two decades, as inflation continues to dog the US economy.

Though some had hoped the Fed would soon cut interest rates, which are at their highest level since 2007, the annual rate of inflation has stubbornly remained above 3%. The Fed's target rate is 2%.