Fed Keeps Interest Rates Steady Amid Inflation Fears and Stock Markets Tumble

The US Federal Reserve has decided to keep the benchmark interest rate unchanged at 3.5% to 3.75%, despite inflation threats.

This decision was made during a meeting of the Federal Open Market Committee (FOMC), which was split with nine members voting to keep the rate steady and three, including Neel Kashkari of Minneapolis Federal Reserve, pressing for a quarter-point rate hike.

The Fed's Chairman Kevin Warsh called the dissent a 'good family fight' over how to tame inflation while keeping the economy stable and job market growing.