The U.S. Federal Reserve has left a key interest rate unchanged as the American economy continues to expand. 

The Federal Open Market Committee voted unanimously to leave the benchmark overnight bank lending rate at a 40-year low of 1.75 percent. 

The rate is the interest that banks charge each other for overnight loans. 

It is the second time the Fed's policy-setting committee has decided to hold rates steady after 11 straight rate reductions last year. 

In a statement explaining its decision, the Fed said the economy, bolstered by a marked swing in inventory investment is expanding at a significant pace. 

Reflecting increased optimism, the Federal Reserve moved to a neutral policy directive, which means members believe risks to the economy are balanced equally between economic weakness and the threat of inflation. 

Economists are expecting Fed policy makers to begin raising interest rates either at their May 7 meeting or their June 25 meeting. 

Some information for this report provided by AP.

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