Federal Reserve Keeps Rates Steady Amid Inflation Concerns

The Federal Reserve left its benchmark interest rate unchanged at about 3.6% on July 29, despite concerns over inflation and energy prices following the Iran war.

The decision, which marked the fifth consecutive meeting without a change in rates, was made by the central bank's rate-setting committee in a 9-3 vote.

Federal Reserve Chair Kevin Warsh presided over his second meeting of the committee and emphasized that he has 'no tolerance' for elevated inflation.

'For some households, businesses, and market professionals, five years of high inflation have left a mistaken impression that's hard to shake, that the Fed's implicit inflation target was somehow above 2%,' Warsh said at a news conference.

'Let me reiterate: there is no soft inflation target. There is no soft implicit target. Not on this committee's watch. There's only a target and it's 2%,' he added.