The Federal Open Market Committee said Wednesday that it believes inflation pressure will moderate going forward, but some risks of higher prices remain.

The statement from the policymaking arm of the Federal Reserve came as it left the target fed funds rate at 5.25%, unchanged for the fifth straight meeting. Rates haven't been altered since last June, and the vote was unanimous.

"Recent indicators have suggested somewhat firmer economic growth, and some tentative signs of stabilization have appeared in the housing market," the FOMC said. "Overall, the economy seems likely to expand at a moderate pace over coming quarters."

Additionally, readings on core inflation "have improved modestly in recent months, and inflation pressures seem likely to moderate over time. However, the high level of resource utilization has the potential to sustain inflation pressures," the FOMC's statement said.

The FOMC said that because some potential for inflation remains, the extent and timing of any additional rate hikes that may be needed will depend on the evolving outlook for both inflation and economic growth.

Stocks surged following the news.

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