US Fed holds interest rates steady, downplays Q1 economic weakness

Says job gains have been solid and fundamentals for consumption growth also solid

The US Federal Reserve kept interest rates unchanged on Wednesday and downplayed weak first-quarter economic growth while emphasizing the strength of the labour market, in a sign it was still on track for two more rate rises this year.

In a bullish statement following the end of a two-day policy meeting, the central bank also said consumer spending continued to be solid, business investment had firmed and inflation has been "running close" to the Fed's target.

"The committee views the slowing in growth during the first quarter as likely to be transitory," the Fed said in a unanimous statement.

The labour market continued