Fed Holds Rates Steady Amid Ongoing Inflation Risks

The Federal Reserve under new Chair Kevin Warsh has maintained its benchmark interest rate for the fifth consecutive meeting, keeping it between 3.5 percent and 3.75 percent.

This decision was made in a 9-3 vote, with three regional presidents voting against maintaining the current rate, instead advocating for a quarter-point hike.

The Fed's move comes amidst ongoing inflation risks due to the war in Iran, with inflation remaining above the central bank's 2 percent target.

Warsh emphasized that the Fed does not have a 'soft target' for inflation and remains committed to achieving an annual rate of 2 percent.