Fed signals rate hikes coming 'soon' amid inflation concerns

The central bank's latest policy statement was released Wednesday.

Officials at the Federal Reserve on Wednesday signaled that they could "soon" raise interest rates for the first time in three years, as inflation concerns cast a shadow over the pandemic-battered economy.

The central bankers said in a statement Wednesday that they were leaving rates unchanged for now, at near-zero levels, but with a recovering labor market and the threat of inflation, this will likely change in the near future.

"With inflation well above 2 percent and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate," the Fed said in a statement Wednesday.

The Fed officials noted in their fresh policy statement that indicators of economic activity and employment have continued to strengthen.