Fed Keeps Interest Rate Steady Amid Inflation Concerns

The Federal Reserve kept its key interest rate unchanged at around 3.6% despite persistently high inflation and rising energy prices caused by the Iran war.

In a 9-3 decision, the Fed's rate-setting committee reached this conclusion after two days of deliberations, marking the fifth straight meeting where the benchmark rate was kept steady.

Dissenting in favor of a quarter-point interest rate hike were Beth Hammack, president of the Federal Reserve Bank of Cleveland; Neel Kashkari, president of the Minneapolis Fed; and Lorie Logan, president of the Dallas Fed. They had previously called for or signaled that they would be open to raising rates to combat high prices.

New Fed Chair Kevin Warsh declared that he has 'no tolerance'' for elevated inflation, as President Donald Trump has put intense pressure on the Fed to cut rates instead of raising them.