Washington DC, Oct. 28 -- The US Federal Reserve kept its benchmark interest rate unchanged at 3.75-4 per cent on Wednesday, as policymakers weighed persistently elevated inflation against resilient domestic spending and strong economic activity.

The Federal Open Market Committee (FOMC) voted 10-2 to maintain the target range for the federal funds rate, while two members favoured a 25-basis-point increase, indicating differences over the appropriate policy response to inflation.

"The Committee decided to maintain the target range for the federal funds rate at 3-3/4 to 4 percent, in support of the Federal Reserve's dual mandate," the FOMC said in its statement.

The decision comes after the Fed raised rates by 25 basis points in Septembe...