US Fed keeps rates unchanged for fourth straight meeting at 3.5%–3.75%: 5 key takeaways

The US Federal Reserve, under new Chairman Kevin Warsh, kept its benchmark interest rate unchanged at 3.50% to 3.75% for the fourth straight meeting, choosing to wait for greater clarity on inflation and growth. US annual inflation accelerated to 4.2% in May from 3.8% in April, the highest since April 2023, with core CPI at 2.9%. Expectations of a potential rate hike later this year have risen amid resilient labour markets, uncertain inflation outlook, and oil prices trading well above year-ago levels due to the ongoing Middle East conflict involving Iran.