The US Federal Reserve has decided to keep interest rates unchanged at 3.5 to 3.75 percent, a move largely anticipated by economists.

The central bank announced the decision on Wednesday, concluding its last two-day policy meeting chaired by Jerome Powell.

According to CME FedWatch, which tracks the probability of monetary policy decisions, there was a 100 percent expectation that rates would remain steady.

Inflationary pressures on oil markets and a stagnant labor market have weighed on the central bank's decision-making. The US Department of Labor is set to release its latest jobs report next week.

"Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook," the central bank said in a statement.

"Job gains have remained low, on average, and the unemployment rate has been little changed in recent months. Inflation is elevated, in part reflecting the recent increase in global energy prices," the statement added.

The decision comes as Kevin Warsh, President Trump's nominee to succeed Powell, was confirmed by the Senate Banking Committee on Wednesday in a party-line vote, advancing his candidacy to the full Senate.

Source: www.aljazeera.com