Fed Holds Ground on Interest Rate Amid Ongoing Inflation Concerns

The Federal Reserve decided to keep its key interest rate at 3.6% for a fifth consecutive meeting, opting not to raise rates in response to ongoing inflation and energy market disruptions.

The decision was made by a 9-3 vote after two days of deliberations, with three policymakers - Beth Hammack of the Cleveland Fed, Neel Kashkari of the Minneapolis Fed, and Lorie Logan of the Dallas Fed - dissenting in favor of a quarter-point rate hike to combat high prices.

Inflation remains above the central bank's 2% target, where it has stayed for over five years, despite ongoing fighting in the Middle East pushing energy costs higher. Crude oil briefly passed $100 a barrel last week following military strikes, and while prices have fluctuated since, average oil costs remain $10 to $15 higher per barrel than at this time last year.