The Fed announcement helped resolved a debate in financial markets over whether the Fed under Jerome Powell, who succeeded Janet Yellen as chairman in February, might see a need to signal a possible acceleration in rate hikes.
Following the Fed's rate decision, the FOMC releases its statement regarding monetary policy.
Policy makers said in a one-page statement that the labor market "has continued to strengthen" and than economic activity "has been rising at a solid rate".
August gold futures last traded at $1,299.20 an ounce, relatively unchanged on the day.
A gradual rise in inflation is coinciding with newfound economic strength.
A global trade war would risk cutting into US economic growth by depressing American export sales and raising inflation by making consumers and businesses pay more for imports.
Actress Rose McGowan indicted on cocaine charge in Virginia
Actress and activist Rose McGowan is set to go to trial in January in Loudoun County, Va., on a cocaine possession charge. The wallet was found by a cleaning crew about five hours after McGowan deplaned, according to the Associated Press .
The Federal Reserve expects the US gross domestic product to grow by 2.8% in 2018, up from March's forecast of 2.7%. It also forecast an even lower unemployment rate of 3.5% for 2019 and 2020.
The central bank also lifted its growth forecast to 2.8 per cent this year, up a small amount from its projection of 2.7 per cent annual growth in March.
The Fed's short-term policy rate, a benchmark for a host of other borrowing costs, is now roughly equal to the rate of inflation, a breakthrough of sorts in the central bank's battle in recent years to return monetary policy to a normal footing.
The Fed offered an improved forecast for unemployment this year, lowering its forecast to 3.6%. Inflation by the Fed's preferred gauge would hit its target of 2 percent this year and edge up to 2.1 percent over the next two years. Inflation expectations are slightly higher this year compared to March's forecast of 1.9%.
All three central banks (and the Bank of England) aim for inflation of about 2%, but in Japan and the Eurozone prices are rising substantially more slowly. Inflation for the next two years is expected to remain at 2.1%, unchanged from the previous forecast. With higher interest rates, this means that real interest rates will push higher. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy.