US Federal Reserve holds key interest rate steady at 3.5% to 3.75%

The Federal Reserve has decided to maintain its benchmark interest rate in the 3.5% to 3.75% range for a fifth consecutive meeting. The Federal Open Market Committee voted 9-3 to keep rates steady, with three dissenters advocating for a quarter-percentage-point increase amid lingering inflation risks, including price pressures linked to conflict in the Middle East.

Federal Reserve Chairman Kevin Warsh stated that the central bank remains committed to reaching its 2% inflation target, emphasizing that "there is no soft inflation target, there is no soft implicit target." Warsh noted that raising rates "could well be part of that solution," though not in isolation, as efforts to curb inflation continue.

Sources: FAZ, Bloomberg, ORF.