WASHINGTON: The US Federal Reserve on Wednesday left interest rates unchanged at a 22-year high of 5.25-5.5 per cent, as yields on long-term US Treasury bonds have spiked in recent months, reported Xinhua.

"Recent indicators suggest that economic activity expanded at a strong pace in the third quarter. Job gains have moderated since earlier in the year but remain strong, and the unemployment rate has remained low. Inflation remains elevated," the Federal Open Market Committee (FOMC) said in a statement after concluding a two-day policy meeting.

In a recent speech, Fed Chairman Jerome Powell suggested that the soaring long-term Treasury yields and the recent jump in borrowing costs could to a certain degree substitute for further Fed increases.

Powell, however, noted that inflation is still "too high," and a few months of good data are "only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal."