Fed Keeps Rates Unchanged Amid Iran War Uncertainty

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

The decision was made after 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' and emphasized that he has 'no tolerance' for elevated inflation.

Warsh noted that the market has reacted to real economic data and the reduction in forward guidance from the central bank, adding that the Fed will continue to monitor the situation before making any changes.