In Yellen's last meeting, Fed leaves interest rates unchanged

Jan. 31 (UPI) -- The Federal Reserve chose not to raise its benchmark interest rate Wednesday in Janet Yellen's last meeting as Fed chairwoman.

The first announcement of 2018 keeps the rate at 1.25 percent to 1.5 percent, after a year that saw the Fed increase the rate three times.

The Fed statement, issued after a two-day meeting of the Federal Open Market Committee, pointed to labor market conditions and inflation in its decision not to change the key rate.

"The committee expects that, with further gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market conditions will remain strong," the statement read. "Inflation on a 12-month basis is expected to move up this year and to stabilize around the committee's 2 percent objective over the medium term."

The economy grew 2.3 percent in 2017 and the unemployment rate in December was 4.1 percent. With the growth, inflation is expected to increase more quickly, The New York Times reported.

The U.S. central bank forecasts three rate hikes this year, including one at its March policy meeting. CNBC reported that plan could change, though, when incoming Chairman Jerome Powell takes over on Feb. 3.