Fed Keeps Interest Rate Unchanged Amid High Inflation and Iran War Uncertainty

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

In a 9-3 decision, the Fed's rate-setting committee marked the fifth straight meeting where the benchmark rate was kept steady.

Dissenting members Beth Hammack, Neel Kashkari, and Lorie Logan had previously called for or signaled that they would be open to raising rates to combat high prices.

New Fed Chair Kevin Warsh declared he has 'no tolerance' for elevated inflation, while traders on Wall Street saw a 33% chance of a rate hike Wednesday.