Fed Holds Interest Rate Steady Amidst US-Iran Tensions

The US Federal Reserve held its benchmark interest rate steady at 3.5-3.75 percent in a 9-3 decision, marking the fifth consecutive pause amidst concerns over the economic impact of renewed fighting in Iran and President Donald Trump's calls to lower borrowing costs.

Fed Chair Kevin Warsh reaffirmed the central bank's 2 percent inflation target during a press conference, highlighting that the US economy is showing 'impressive resilience' despite 'recent shocks.'

The rate decision left the gap between the key interest rates of South Korea and the United States at up to 1 percentage point.