US Fed holds rates steady over Iran war implications

WASHINGTON: The US Federal Reserve kept interest rates unchanged as expected on Wednesday, in defiance of President Donald Trump, as the world’s largest economy battles stubborn inflation, weak labour demand and an “uncertain” economic outlook due to the war in Iran.

The 11-1 vote kept rates steady at a range of 3.50 per cent to 3.75pc, with officials flagging one expected rate cut by the end of the year.

“The implications of developments in the Middle East for the US economy are uncertain,” the Fed said in a statement.

The central bank cut rates three consecutive times late last year before holding them steady at its January meeting.

It has a dual mandate of maintaining inflation near a long-term target of 2pc while ensuring maximum employment.

With war in the Middle East causing........

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