Fed Holds Interest Rate Steady Amid Iran War-Fueled Inflation

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

The rate-setting committee reached this decision after two days of deliberations, marking the fifth straight meeting where the benchmark rate was kept unchanged.

Dissenting in favor of a quarter-point interest rate hike were Beth Hammack, president of the Federal Reserve Bank of Cleveland; Neel Kashkari, president of the Minneapolis Fed; and Lorie Logan, president of the Dallas Fed.

Fed Chair Kevin Warsh has declared that he has 'no tolerance' for elevated inflation, but traders on Wall Street saw a 33% chance the Fed would hike rates to combat high prices.