New Delhi, May 8 -- The US Federal Reserve has decided to keep interest rates unchanged at 4.25 per cent to 4.50 per cent, as the risks of both higher unemployment and rising inflation have increased.

The Federal Open Market Committee (FOMC) meeting held on Wednesday local time took the decision after reviewing the latest economic data.

The Fed in a statement said, "The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen. In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent."

It also noted that recent indicators suggest that the US economy continues to grow at a s...