The U.S. Federal Reserve holds its benchmark interest rate steady for a fifth consecutive meeting on Wednesday, citing inflation and economic shock risks tied to renewed Iran tensions. In a 9–3 decision, the Federal Open Market Committee (FOMC) keeps the federal funds rate in the 3.5% to 3.75% range. Multiple outlets report that the decision comes as energy prices rise again amid an uneasy U.S.-Iran posture, raising concerns that a war-driven energy cost shock could worsen or prolong inflation.
Sources also note that some members dissented, with three policymakers preferring a rate increase of 0.25 percentage points. The decision follows cooler inflation data released earlier in the month, which had reduced expectations of an imminent hike. At a news conference, Fed Chair Kevin Warsh reiterates the Fed’s 2% inflation target and describes the U.S. economy as showing resilience despite recent shocks.
The outlets also mention that President Donald Trump renews calls for lower interest rates, while the Fed maintains its stance despite that pressure.
