Fed Keeps Interest Rates Steady Amid Calls for Cuts and Hike Talk

The Federal Reserve kept interest rates steady at 3.5% to 3.75%, despite calls from the White House for rate cuts and growing talk of a potential hike.

In a decision that was not unanimous, three Fed officials dissented, favoring a quarter-point rate hike.

Federal Reserve Chairman Kevin Warsh said inflation remains elevated relative to the committee's 2 percent goal, but expressed confidence in delivering price stability.

The ongoing war in Iran has added volatility to prices, and shifting tariff policy could complicate the inflation outlook.