Fed Holds Rates Steady Amid Inflation Fears from Iran Conflict

The Federal Reserve kept its main interest rate unchanged at 3.5% to 3.75% on July 29, as inflation driven by the war with Iran and rising oil prices challenges the US economy.

Policymakers faced a difficult choice as global energy prices surged due to the conflict in the Middle East, fueling inflation in the United States.

The Federal Reserve's decision was widely expected by investors and analysts despite uncertainty about the future direction of monetary policy.