The Federal Reserve held interest rates steady at Kevin Warsh’s first policy meeting as chairman of the U.S. central bank.
Officials voted 12–0 to keep the benchmark federal funds rate unchanged at a target range of 3.5 percent and 3.75 percent.
“Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East,” the post-meeting Federal Open Market Committee statement said. “Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little.”
Inflation is still running above the committee’s 2 percent target, partly due to supply‑side shocks that have pushed up prices in areas such as energy, the Fed said.
“The Committee remains committed to restoring price stability.”