Fed Stands Pat on Interest Rates Amid Ongoing Inflation Concerns

The Federal Reserve has maintained its federal funds rate at 3.5%, 3.75%, marking the fifth consecutive meeting without a change in interest rates, said Chairman Kevin Warsh.

In his second FOMC meeting as chairman, Warsh explained that the decision was not a 'pause' but rather a 'rigorous review of the economic situation.'

Warsh acknowledged the 'impatience' households and businesses have felt regarding inflation, saying he understood their frustration but pushing back on the notion that the Fed has been slow to act.

The economy is showing 'impressive resilience,' Warsh said, pointing to job gains that have kept pace with the workforce and an unemployment rate that has changed little. However, inflation remains above the committee's 2% goal.