Economic Buzz: US Federal Reserve keeps interest rates unchanged amid inflation concerns

The U.S. Federal Reserve has decided to keep its key interest rates unchanged at 3.5% to 3.75%, as it remains cautious about rising inflation linked to the ongoing war in Iran. This marks the third time this year that the central bank has held rates steady, following similar decisions in January and March. Previously, the Fed had reduced rates three times late last year.

The decision was made by the Federal Open Market Committee (FOMC) in an 11-1 vote. While most members supported holding rates, Fed Governor Stephen Miran disagreed and voted in favor of a small rate cut.

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