1st LD: U.S. Fed leaves rates unchanged amid leadership change

WASHINGTON, Jan. 31 (Xinhua) -- The U.S. Federal Reserve on Wednesday left its benchmark interest rates unchanged as current Fed Chair Janet Yellen prepares to hand over the leadership of the central bank to Jerome Powell later this week.

The Fed decided to maintain the target range for the federal funds rate at 1.25 to 1.5 percent after its two-day meeting, while giving an upbeat assessment of recent U.S. economic growth.

"Gains in employment, household spending, and business fixed investment have been solid, and the unemployment rate has stayed low," the Fed's policy-making committee said in a statement.

The Fed also expected U.S. inflation on a 12- month basis to "move up this year and to stabilize" around the central bank's 2 percent target over the medium term. Enditem