Federal Reserve holds interest rates steady in Yellen's last meeting as chair

In a widely expected move, the U.S. Federal Reserve has kept interest rates unchanged at one and a quarter to one and a half percent. However in Janet Yellen's final meeting as chair, the Fed indicated it expects inflation pressures to heat up as the year moves on, in a sign it may raise rates in March under incoming central bank chief Jerome Powell. Citing solid gains in employment, household spending and capital investment, the Fed said it expected the economy to expand at a moderate pace and the labor market to remain strong in 2018.Yellen has led a cautious approach to rate increases in her four years as chair, and Powell, who will succeed her next week, has indicated he favors a similar approach.