The US Federal Reserve has held the benchmark interest rate steady and policy makers expect a hike in borrowing costs later this year amid growing concerns about inflation lodged above the United States central bank's two per cent target.

How this affects you

The US Federal Reserve's decision to maintain interest rates, under its new chairman Kevin Warsh, indicates a potential shift in monetary policy with a likely rate hike later this year to address inflation, which could impact borrowing costs and economic growth in the United States.