Fed Holds Rates Steady Amid Elevated Uncertainty

The Federal Reserve has left interest rates unchanged at its current range of 3.5% to 3.75%, citing elevated uncertainty due to the war in Iran.

This decision was made during the central bank's second meeting led by Fed Chair Kevin Warsh, who has removed forward guidance from post-meeting statements.

The Federal Open Market Committee (FOMC) noted that economic activity is expanding at a solid pace despite the uncertainty, but added that inflation remains above the 2% goal due to supply shocks driving price increases in sectors such as energy.