Fed holds rates steady, cites uncertainty from Middle East conflict
The U.S. Federal Reserve held its benchmark interest rate steady at 3.5-3.75 percent for the third consecutive meeting, citing elevated inflation and economic uncertainty linked to the Middle East conflict. Officials expressed concern over rising oil prices and their impact on inflation, which increased to 3.3 percent year-over-year in March. The decision marks a cautious approach as the Fed navigates external risks amid a transition in leadership with Chair Jerome Powell's term ending in May.
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U.S. Federal Reserve Chair Jerome Powell holds a press conference at the Fed in Washington, D.C., on Dec. 10, 2025. Reuters-YonhapWASHINGTON — The U.S. Federal Reserve on Wednesday held its benchmark interest rate steady for the third consecutive time, citing "elevated" inflation amid a recent rise in oil prices and warning that the Middle East conflict is contributing to a "high level" of economic uncertainty.The central bank decided to leave the rate unchanged at the 3.5-3.75 percent range during the two-day Federal Open Market Committee (FOMC) meeting, which might be the last rate-setting gathering under Fed Chair Jerome Powell, whose chairmanship is set to expire on May 15.The pause put the gap between the key rates of South Korea and the United States at up to 1.25 percentage…
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