Fed Holds Rates Amid Rising Inflation Concerns

The Federal Reserve announced that it will maintain its target interest rate range at 3.5% to 3.75%. This decision was made by the Federal Open Markets Committee (FOMC) with a vote of 9-3 in favor of keeping rates unchanged.

Federal Reserve Chair Kevin Warsh emphasized the central bank's commitment to achieving its 2% inflation target, which has been a goal since March 2021. The US actual inflation rate has remained above this target for five years, with the lowest reading of 2.3% in April 2025.

Warsh acknowledged public sentiment and frustration over high inflation, saying 'we will deliver' price stability. He highlighted the Fed's primary tool to combat inflation: raising interest rates.