The Federal Reserve on Wednesday kept interest rates steady as the central bank continues to gauge increases in inflation and industrial stresses on an otherwise solid economy.

The Fed kept interest rates at the 1.5 to 1.75 percent target range it set in March — the first rate hike under Chairman Jerome Powell, who took control of the bank in February.

Fed officials were not expected to raise rates Wednesday, but will likely increase rates at least twice more in 2018. The bank is aiming to return interest rates to historic normal averages while allowing the economy to grow at a stable pace.

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The Fed said "on a 12-month basis, both overall inflation and inflation for items other than food and energy have moved close to 2 percent."

"Inflation on a 12-month basis is expected to run near the Committee's symmetric 2 percent objective over the medium term," the Fed said.

The Fed indicated that it would continue with gradual rate hikes without accelerating the timeline in response to inflation.

Inflation has now risen close to the Fed’s target, the annual rate of price increases the bank believes reflects a stable and vibrant economy. The jobless rate is close to 4 percent — below the level the Fed considers full employment. Both factors have fueled expectations that the Fed could raise rates four times this year avoid a dangerous inflation spike.

A growing number of Fed officials are projecting the bank to hike rates three more times in 2018. But further increases could be delayed by the impact of President Trump Donald John TrumpOmar fires back at Trump over rally remarks: 'This is my country' Pelosi: Trump hurrying to fill SCOTUS seat so he can repeal ObamaCare Trump mocks Biden appearance, mask use ahead of first debate MORE’s proposed tariffs among other obstacles.

U.S. industrial production has slowed to the slowest pace since July, according to the Institute for Supply Management, as rising materials prices, shipping costs and backlogs hinder firms already suffering from a skilled-labor shortage.

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Wage growth has also lagged behind the tight overall labor market, and the 2017 tax cuts have yet to yield a significant investment in hiring and business capital.

The Fed could be inclined to hold off on further rate hikes and let the economy use cheaper capital to rebalance.

Updated at 2:17 p.m.