Fed Stays Pat on Interest Rates Amid Trump Pressure and Iran War Fears

The Federal Reserve held its benchmark interest rate steady in a 9-3 vote, citing elevated inflation and the resilience of the U.S. economy despite recent shocks from the Iran war.

During a press conference following the two-day meeting of the Federal Open Market Committee (FOMC), Fed Chair Kevin Warsh reaffirmed the central bank's 2 percent inflation target to deliver price stability, emphasizing that the goal remains unchanged.

Warsh highlighted 'impressive resilience' in the U.S. economy, with solid output, strong capital expenditure and productivity, as well as a steady labor market.