Fed Keeps Rates Unchanged Amid Ongoing Inflation Worries

The US Federal Reserve has maintained its benchmark interest rate at 3.50%-3.75%, despite a resilient economy and healthy labor market.

The decision, which was widely expected, was approved by a 9-3 vote of the Federal Open Market Committee (FOMC), with three policymakers supporting a 25-basis-point rate hike.

Federal Reserve Chair Kevin Warsh reaffirmed the central bank's commitment to restoring inflation to its 2% target, saying 'You've heard this before, but we will deliver price stability.'

The Fed said the US economy continues to expand at a solid pace despite uncertainty stemming partly from the conflict in the Middle East.