The Federal Reserve left interest rates unchanged on Wednesday, following President Donald Trump’s decision to maintain the naval blockade of Iran and indefinitely extend the war that has stoked inflation.
“Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook,” the Fed Board of Governors wrote in a statement.
The board voted to hold rates steady at 3.5% to 3.75%, citing low job gains, little change in the unemployment rate and elevated inflation due in part to “the recent increase in global energy prices.” Only one governor, Stephen Miran — who resigned as chair of the White House Council of Economic Advisers in February to stay in his appointed seat at the Fed — voted to lower rates by a quarter percentage point.