The US Federal Reserve has decided to hold its key interest rate steady.

The Fed made the announcement on Wednesday after wrapping up a two-day policy meeting.

It is the first time since June that the Fed has kept the rate unchanged. At the previous meeting in July, the Fed raised the rate by 0.25 percentage points to a range of 5.25 to 5.5 percent.

At a news conference after the meeting, Fed Chair Jerome Powell said inflation has moderated somewhat since the middle of last year, and wage growth has shown some signs of easing. He indicated that the worker shortage -- a key factor for the recent inflation -- is mitigating.

The policymakers' projections at the meeting show that they anticipate one more rate hike by the end of the year.

Powell said the policymakers "are prepared to raise rates further if appropriate."