The US Federal Reserve kept interest rates unchanged on Wednesday, choosing to wait for clearer signs on inflation as renewed fighting linked to Iran keeps pressure on oil prices and clouds the outlook for the world’s largest economy. The Federal Open Market Committee held the benchmark rate at at 3.5% to 3.75%, in line with expectations. The decision came after a two-day meeting and was followed by a press conference by Fed Chair Kevin Warsh, his second policy meeting since taking charge of the central bank.
The decision comes at a difficult moment for the US central bank. Inflation has cooled from its earlier highs but remains above the Fed’s long-term 2% target. Consumer prices rose 3.5% year-on-year last month, and investors are worried that swings in oil prices linked to the Iran conflict could push inflation higher again.
