The U.S. Federal Reserve is expected to hold interest rates steady on Wednesday as it awaits further inflation and jobs data and more clarity on the economic impact of President Donald Trump's policies before deciding whether to cut borrowing costs again.

The Federal Reserve left its benchmark interest rate unchanged Wednesday after cutting it three times in a row last year, a sign of a more cautious approach as the Fed seeks to gauge where inflation is headed and what policies President Donald Trump may pursue.

The United States Federal Reserve left its interest rate unchanged Wednesday after shaving three straight reductions since September. The target range remained 4.25 per cent to 4.5 per cent. The move increases the gap between the Fed and the Bank of Canada which cut its rate to 3 per cent Wednesday.