Fed Stands Pat on Interest Rates Amid Iran War-Driven Inflation Surge

The Federal Reserve decided to keep interest rates unchanged on Wednesday as the US economy struggles with rising inflation caused by the Iran war.

Elevated price increases have been attributed in part to supply shocks, including energy costs, which have driven up fuel prices and catapulted inflation to a three-year high at 3.5% annual pace.

Fed Chair Kevin Warsh has vowed to slash inflation to the Fed's desired level of 2%, stating 'persistently high prices are a burden for the American people.'

Despite the challenging economic environment, hiring has proven resilient, with an average of 92,000 jobs added per month over the first half of this year.