02:34 PM EST, 01/29/2025 (MT Newswires) -- The Federal Reserve on Wednesday held its benchmark lending rate steady, while dropping a reference from its December statement that inflation had made progress.

The Federal Open Market Committee kept interest rates in the range of 4.25% to 4.50%, in line with Wall Street's expectations. Policymakers cut rates by 50 basis points in September and by 25 basis points each in November and December.

The FOMC reiterated that inflation remained "somewhat elevated," but removed reference to inflation making progress toward the committee's 2% target.

"Recent indicators suggest that economic activity has continued to expand at a solid pace," the FOMC said Wednesday following its two-day meeting. "The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid."

Official data released earlier this month showed that US consumer inflation accelerated in December sequentially and annually, while core measures came in below the Street's estimates.

"In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the committee will carefully assess incoming data, the evolving outlook, and the balance of risks," the FOMC said Wednesday, reiterating its remarks from December.

The next FOMC meeting is scheduled for March 18-19.