The U.S. Federal Reserve on Thursday held its benchmark interest rate steady, maintaining the federal funds rate at 4.25% to 4.50% amid signs of continued economic expansion and persistent inflationary pressure. The Federal Open Market Committee noted that while net export swings have added volatility to recent data, overall activity remains solid and the labor market continues to show strength.

The Fed emphasized growing uncertainty around the U.S. economic outlook and reiterated that it will assess incoming data and the evolving balance of risks before making any further adjustments. The Fed also confirmed it will continue reducing its holdings of Treasury and mortgage-backed securities, and stands ready to act if conditions threaten its 2% inflation objective.