Federal Reserve leaves interest rates unchanged despite stubborn inflation

The Federal Reserve left interest rates unchanged on Wednesday, despite stubborn inflation that has resisted the central bank's fight to cool price increases.

The move allows previous rate increases to take greater hold of the economy and grants the central bank time to assess whether another hike will be necessary.

Once bemoaned as a source of recession worries, the U.S. economy has become a wellspring of good news: blistering growth, robust hiring and consumers opening their wallets for everything from concert tickets to bar tabs.

The strong performance complicates the fight to dial back inflation, posing a quandary for the Fed.

Since last year, the Fed has raised its benchmark interest rate at the fastest pace in more than two decades, seeking to slash price hikes by slowing the economy and reducing consumer demand.