New Delhi, Oct. 29 -- The US Federal Reserve kept its benchmark interest rate unchanged at a target range of 3.75 per cent to 4.00 per cent, keeping the average effective rate at approximately 3.9 per cent despite stubbornly high inflation.

In a statement released after its two-day policy meeting, the Fed said, inflation remains elevated and holding off on an increase will allow the accumulation of more information that will help determine what policy the Fed should pursue to ensure a timely return of inflation to the central bank's 2 per cent target.

The statement leaves the Fed's next moves unclear, even though officials last month pencilled in another rate hike for this year. The Fed's decision comes just six days before a midterm el...