Fed Holds Interest Rate Steady Amid Dissent and Economic Uncertainty
The Federal Reserve kept its benchmark interest rate steady at around 3.6% on Wednesday, despite three officials dissenting in favor of higher rates.
The decision marked the fifth consecutive meeting where the Fed has left the rate unchanged.
Some economists and Wall Street analysts had predicted a quarter-point hike, but the Fed's rate-setting committee opted to maintain the status quo.
The average credit card rate remains near 20%, while mortgage rates are at their highest since last August.
Inflation has been stuck above the central bank's 2% target for over five years, with various factors contributing to price pressures.
Fed policymakers face a quandary in tackling inflation, given uncertainty surrounding the economic outlook and the impact of external factors such as the Iran war and technology companies' investments in artificial intelligence.