Fed Keeps Interest Rate Unchanged Amid Iran War Uncertainty

The Federal Reserve's rate-setting committee left its key interest rate unchanged at around 3.6% in its latest meeting, despite high inflation and a spike in energy prices caused by the Iran war.

The decision was made with a 9-3 vote, with Beth Hammack, Neel Kashkari, and Lorie Logan dissenting in favor of a quarter-point interest rate hike.

Fed Chair Kevin Warsh praised the dissents as a 'good family fight,' indicating that he values differing opinions within the committee.

Inflation has been above the central bank's 2% target for over five years, and the Iran war has added to economic uncertainty and driven up energy prices.