Fed Holds Interest Rates Steady Amid Ongoing Inflation Concerns

The US Federal Reserve has decided to keep interest rates steady at between 3.5 and 3.75 per cent, following its second meeting of the Federal Open Markets Committee (FOMC) with Kevin Warsh as Fed Chairman.

The decision was largely expected by bond markets and economists, as high inflation persists in the US due to rising oil prices caused by the ongoing conflict with Iran.

Inflation remains elevated at 4.1 per cent for personal consumption expenditures (PCE) in May, a three-year high, while core PCE is at 3.4 per cent.