Investors had widely expected the central bank to keep rates unchanged at 3.5 to 3.75 per cent. PHOTO: BLOOMBERGTHE S&P 500 closed slightly lower and the Nasdaq advanced modestly on Wednesday as investor reactions were muted after the Federal Reserve kept interest rates unchanged as expected and gave little indication when borrowing costs might fall again. In its statement, the Fed cited still-elevated inflation alongside solid economic growth for its decision. Investors had widely expected the central bank to keep rates unchanged at 3.5 to 3.75 per cent and it said that eight out of 10 policymakers had voted to hold rates steady. “Employment and inflation risks have downsized, but inflation overall remains stubborn.