Fed holds interest rates steady as inflation stays elevated

The US Federal Reserve held its benchmark interest rate steady at 3.5%-3.75% on Wednesday, citing elevated inflation partly driven by energy supply shocks. Three regional bank presidents—Beth M. Hammack, Neel Kashkari, and Lorie K. Logan—dissented, voting for a hike. The decision, the second under new Chairman Kevin Warsh, comes amid heightened US-Iran tensions and uncertainty after Warsh abandoned forward guidance.