Fed Rate Freeze Sparks Uncertainty Amid Middle East Tensions

The US Federal Reserve's decision to keep interest rates unchanged has heightened uncertainty over the future path of US monetary policy, according to the Bank of Korea (BOK).

The Fed kept its benchmark interest rate at a range of 3.5-3.75 percent for the fifth consecutive meeting without a change.

Three Federal Reserve governors dissented from this decision, favoring a rate hike. Chairman Kevin Warsh reaffirmed the Fed's commitment to its 2 percent inflation target, stating 'Let me reiterate (that) there is no soft inflation target.'

Park Jong-woo, deputy governor of the BOK, noted that the lack of clear guidance on future monetary policy from the Fed has increased uncertainty and driven long-term interest rates sharply higher.