Fed Freezes Interest Rate Amid Oil Price Volatility

The U.S. Federal Reserve (Fed) maintained its key interest rate for the fifth consecutive time, keeping it between 3.5% and 3.75%. This decision was made despite a recent slowdown in inflation, which had led some to predict a rate hike.

The Fed's decision was influenced by the ongoing volatility in international oil prices due to the Iran war. The Consumer Price Index (CPI) rose 3.5% in June from the previous year, but this was lower than expected at 3.8%. Excluding energy and food products, the core CPI fell from 2.9% in the previous month to 2.6%.

The Fed's Chairman Kevin Wash reiterated his commitment to price stability, stating that 'Our commitment to achieving price stability is strong, unanimous, and by no means ambiguous.'

Some analysts predict that the freeze may increase the possibility of a rate hike within this year, especially in September. According to the Chicago Mercantile Exchange (CME) FedWatch, the odds of raising the FOMC in September and October are 82% and 88%, respectively.