Federal Reserve holds rates steady at Warsh’s first meeting

The Federal Reserve held interest rates steady Wednesday at Chair Kevin Warsh’s first rate-setting meeting since taking the reins of the central bank.

In a unanimous decision, the Federal Open Market Committee (FOMC) maintained its baseline interest rate at a range of 3.5 percent to 3.75 percent. It marks a shift from the panel’s divided vote in May, in which four members dissented.

Warsh, whom the Senate confirmed last month, faces a complicated endeavor as he seeks to balance President Trump’s push for rate cuts with rising inflation.

Inflation hit a three-year high in May, as the war with Iran pushed up the cost of energy and other goods. Prices rose 4.2 percent year over year, according to the consumer price index, a popular measure of inflation.

It marked a steep uptick from February, when the annual inflation rate sat at 2.4 percent. While the U.S. and Iran are expected to formally sign a memorandum of understanding to end the war on Friday, it’s unclear how quickly prices will come back down.

The agreement is expected to reopen the Strait of Hormuz, a key shipping corridor where........

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