Fed Votes to Leave Key Rate Unchanged Amid High Inflation and Energy Prices

The Federal Reserve has decided to keep its key interest rate unchanged at around 3.6% despite high inflation and energy prices. The decision was made by a 9-3 vote, with three Fed policymakers dissenting in favor of a quarter-point interest rate hike. The current inflation rate has been above the central bank's 2% target for more than five years.

Wednesday's decision marks the fifth straight meeting at which the benchmark rate remained unchanged. The dissenting votes came from Beth Hammack, president of the Federal Reserve Bank of Cleveland; Neel Kashkari, president of the Minneapolis Fed; and Lorie Logan, president of the Dallas Fed. The Iran War has contributed to a spike in energy prices.

The decision was made after two days of deliberations by the Fed's rate-setting committee. Despite the dissenting votes, the majority of policymakers decided not to raise the interest rate at this time.