Of the 12 FOMC members, 11 voted for keeping the rate unchanged. Stephen Miran, who voted against the action, preferred to lower the target range for the federal funds rate by 25 basis points at the meeting.

WASHINGTON, April 29 (Xinhua) -- The U.S. Federal Reserve on Wednesday decided to maintain its target range for the federal funds rate at 3.5-3.75 percent as high energy prices added inflationary pressures.

"Recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, on average, and the unemployment rate has been little changed in recent months. Inflation is elevated, in part reflecting the recent increase in global energy prices," said the Federal Open Market Committee (FOMC) in a statement.

"Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook. The Committee is attentive to the risks to both sides of its dual mandate," the FOMC went on in the statement.

"In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent," the statement said.

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, it said.

The FOMC reiterated its commitment to supporting maximum employment and returning inflation to its 2 percent objective.

Of the 12 FOMC members, 11 voted for keeping the rate unchanged. Stephen Miran, who voted against the action, preferred to lower the target range for the federal funds rate by 25 basis points at the meeting.

While supporting the decision to maintain the target range for the federal funds rate, three other FOMC members did not support inclusion of an easing bias in the statement at this time.

"This is my last press conference as chair, and I will close with a few thoughts," Fed Chair Jerome Powell said at a press conference after the meeting.

He congratulated U.S. President Donald Trump's nominee Kevin Warsh on his advancement out of the Senate Banking Committee on Wednesday morning as his successor, and expressed his faith in the Fed's core tenet of fostering "the economic conditions in which American families and businesses can thrive -- stable prices, a strong job market, and a financial system they can depend on."

Powell said he would continue acting as a Fed governor after his chairmanship concludes on May 15, adding that he plans to keep a low profile as a governor. "The things that have happened really in the last three months have ... left me no choice but to stay until I see them through at least that long."

Powell said he believed Warsh will stand up to political pressure from Trump, as "he testified very strongly to that effect in his hearing."

Responding to a question about dissents at the meeting, Powell said dissenting opinions were expected given the magnitude of uncertainty introduced by the war against Iran.

He warned that fuel costs will continue to rise as long as the Strait of Hormuz remains closed. "We're very well aware that people are experiencing higher gas prices all over the country now, and that hurts."

Following the Fed's decision to keep rates unchanged, U.S. stock prices dropped, the U.S. dollar index rose, and gold prices dipped.

The Department of Justice on Friday dropped its criminal investigation targeting Powell, three days after Warsh testified before the Senate Banking Committee on his nomination.

Powell has said that the real reason for the Justice Department's probe was to pressure him and the Fed to lower interest rates as Trump wanted.