The Federal Reserve kept its benchmark lending rate steady Wednesday, leaving the so-called easing bias out of its policy statement.
The central bank's Federal Open Market Committee maintained its interest rates at 3.50% to 3.75%, in line with Wall Street's expectations and marking its fourth consecutive pause.
Last year, the FOMC delivered three back-to-back 25-basis-point cuts amid concerns about the labor market.
The latest policy statement excluded language that suggested a lingering bias toward rate cuts.
"Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East," the FOMC statement said. "Job gains have kept pace with the workforce, and the unemployment rate has changed little."
The decision was unanimous, according to the statement.
The Fed's April decision to hold rates drew opposition from then-Governor Stephen Miran, who favored a rate cut, while three other officials wanted the easing bias removed.
"Inflation remains elevated relative to the committee's 2% goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy," it said Wednesday. "The committee will deliver price stability."
Earlier this month, official data showed US annual inflation accelerated to the highest in about three years.
The US and Iran have agreed to end their war and reopen the Strait of Hormuz.
Fed officials' next monetary policy meeting is scheduled for July 28-29.
