Fed Holds Interest Rate Amid Ongoing Iran War Uncertainty

The Federal Reserve kept its key interest rate unchanged at around 3.6% in a 9-3 vote, despite high inflation and energy prices caused by the Iran war.

Central bank policymakers had been weighing whether to raise rates to combat inflation, which has exceeded their 2% target for over five years.

New Fed Chair Kevin Warsh declared that he has 'no tolerance'' for elevated inflation, echoing a sentiment expressed by other Fed officials.

However, some members of the rate-setting committee, including Beth Hammack and Neel Kashkari, had signaled they would be open to raising rates to combat high prices.