The Federal Reserve held interest rates steady for the fifth consecutive time on Wednesday, keeping the benchmark rate at 3.5% to 3.75% as expected by markets. Fed Chairman Kevin Warsh said there was no ‘magic wand’ to ease the cost of living for Americans.
Policymakers voted 9-3 in favor of keeping rates on hold, with the three dissenters pushing for a small hike. The decision comes amid growing uncertainty over the impact of the ongoing Middle East conflict on global oil prices and consumer costs.
Brent crude, the global benchmark for oil prices, rose more than 6% to above 9 a barrel on Wednesday. Inflation in the US stands at 3.5% in the year to June, still above the Fed’s 2% target despite falling from higher levels.
Warsh repeated his pledge to bring down inflation but acknowledged it would take time. Asked why the Fed did not raise rates, Warsh said his board had only been in position for eight-and-a-half weeks and that patience was needed.
Author: Pulse Of Nations Wire Desk
