Fed Stands Pat on Rates Amid Inflation Fears

The Federal Reserve kept its benchmark interest rate unchanged at around 3.6% on Wednesday, in line with market expectations and despite calls from some policymakers for a hike to combat high inflation.

The decision was made after two days of deliberations by the Fed's rate-setting committee, which has kept rates steady for five consecutive meetings.

Economists had predicted a quarter-point hike, but the central bank opted against it, citing persistently high inflation above its 2% target. The average credit card rate remains near 20%, and mortgage rates are at their highest since August last year.

Fed Chair Kevin Warsh emphasized that the Fed is committed to combating inflation, but acknowledged there's no 'magic wand' to make it disappear overnight. He welcomed the vigorous debate among policymakers, saying, 'I asked for a good family fight and I got one.'