Fed says US growth slowed; keeps rate unchanged

Washington: The Federal Reserve said US growth slowed late last year as it kept its benchmark interest rate unchanged on Wednesday after December`s historic hike.

In a short policy statement, the US central bank hinted at some concern with global market turbulence and sluggish growth.

But it said it still expected that inflation, weakened in the short term by the oil price crash, would push toward its 2.0 percent goal in the medium term.

And it left the door open for a second rate increase in March, even as markets increasingly discount the likelihood.

"Information received since the Federal Open Market Committee met in December suggests that labor market conditions improved further even as economic growth slowed late last year," the FOMC said at the end of a two day meeting.

"The committee is closely monitoring global economic and financial developments and is assessing their implications for the labor market and inflation, and for the balance of risks to the outlook."