Washington DC - US Federal Reserve Chair Kevin Warsh on Wednesday vowed wide-ranging reforms at the central bank, as its rate-setting committee held rates steady but projected a rate hike by year-end to counter surging inflation.

The Fed decided to hold rates steady at 3.50 to 3.75% for the fourth consecutive meeting, with the vote being unanimous for the first time in a year.

Policymakers said inflation remained "elevated," partly due to supply shocks caused by skyrocketing energy prices triggered by President Donald Trump's war on Iran.

Speaking to reporters after the meeting, Warsh vowed that the Fed would "deliver price stability" to Americans.

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"Persistently high prices are a burden for the American people, but the recent past need not be prologue," he said, acknowledging that inflation has been well ahead of the Fed's 2% target.

Trump has launched an unprecedented assault on the Fed's independence, opening a criminal probe into Warsh's predecessor and attempting to unseat another governor in his quest for lower interest rates.

Shortly after Wednesday's meeting, the Republican said he found it "hard to believe" the Fed would raise rates, but said he backed Warsh's decisions.

Warsh also announced plans Wednesday to review five areas of Fed operations as he seeks to put his stamp on the US central bank.

He said he would name task forces to areas "central to the broad conduct of monetary policy": Fed communications, its balance sheet, its use of data sources, productivity/employment and the Fed's inflation frameworks.

Findings are expected by the end of the year, he said.

Wednesday's statement was shorter than normal and removed the forward guidance on the direction of the interest rate, which has been a constant in recent years.