The U.S. Federal Reserve is expected to hold interest rates steady on Wednesday as it awaits further inflation and jobs data and more clarity on the economic impact of President Donald Trump's policies before deciding whether to cut borrowing costs again.

The United States Federal Reserve left its interest rate unchanged Wednesday after shaving three straight reductions since September. The target range remained 4.25 per cent to 4.5 per cent. The move increases the gap between the Fed and the Bank of Canada which cut its rate to 3 per cent Wednesday.

The US Federal Reserve announced today that it will hold its policy interest rate steady in the target range between 4.25 and 4.5 per cent.

The Federal Reserve held interest rates steady at its January meeting following three consecutive rate cuts amid uncertainty over inflation and economic conditions.