The US Federal Reserve held its benchmark interest rate steady at 3.5-3.75 percent. The decision was made amid rising inflation and labor market pressures linked to the US war on Iran, reports Todayinfo.
The central bank announced the decision on Wednesday after a two-day policy meeting. This was the last meeting chaired by Jerome Powell. As economists expected, the rate remained unchanged.
“Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook,” the central bank said in a statement.
According to CME FedWatch, market participants were 100 percent certain the rate would not change. Inflationary pressures on oil markets and a stagnant labor market weighed on the decision. The US Department of Labor is set to release its latest jobs report next week.
The decision came as Kevin Warsh, Trump's nominee to succeed Powell, was confirmed by the Senate Banking Committee in a party-line vote, advancing his candidacy to the full Senate.
