Fed Holds Interest Rates Steady Amid Inflation Concerns

The Federal Reserve held interest rates steady on Wednesday at its first meeting since the US-Israeli war with Iran drove up gasoline prices and risked a wider bout of inflation.

The central bank's move marked the second consecutive time it has opted to maintain interest rates at current levels since the outset of 2026, according to market expectations.

Federal Reserve Chair Jerome Powell said that elevated price increases have coincided with a slowdown of economic growth, threatening to intensify an economic double-whammy known as 'stagflation.'

The Fed's decision on Wednesday came after the release of a lackluster jobs report last week, which showed the US economy lost 92,000 jobs in February.