US Federal Reserve Keeps Policy Rate Unchanged at 3.5‑3.75% Under New Chair Kevin Warsh

The U.S. Federal Reserve left its target interest rate unchanged at 3.5‑3.75%, voting unanimously in the Federal Open Market Committee. The decision, the fourth consecutive hold, was taken at the first meeting chaired by newly appointed head Kevin Warsh.

Fed officials said the U.S. economy continues to grow solidly while inflation remains elevated at 4.2% in May, well above the 2% goal. Market participants now see about a 60% chance that the Fed will raise rates at least once before year‑end, reflecting expectations of future tightening.

The announcement came as the United States and Iran moved toward a cease‑fire agreement that is expected to ease oil shipments through the Strait of Hormuz, modestly lowering crude prices and easing some pressure on energy‑related inflation.