Federal Reserve Keeps Interest Rate Unchanged Amid High Inflation

The Federal Reserve maintained its benchmark interest rate at around 3.6% despite high inflation and rising energy prices caused by the Iran war.

In a 9-3 decision, the Fed's rate-setting committee decided to keep rates unchanged for now, with three policymakers dissenting in favor of a quarter-point interest rate hike.

The decision comes as inflation has been stuck above the central bank's 2% target for more than five years, and new Fed Chair Kevin Warsh has expressed 'no tolerance' for elevated inflation.

Policymakers may want to see more economic data before making a decision, with key indicators such as the personal consumption expenditures (PCE) price index scheduled for release on Thursday.