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.<br /> 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. <br />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.<br />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. <br />
