▲ This photo, released by EPA, shows U.S. Federal Reserve Chair Jerome Powell speaking during a press conference at the Federal Reserve Board Building in Washington on March 18, 2026. (Yonhap)

FOMC-rate decision

Fed holds rates steady for 3rd time amid war-driven inflation concerns

By Song Sang-ho

WASHINGTON, April 29 (Yonhap) -- The U.S. Federal Reserve on Wednesday held its benchmark interest rate steady for the third consecutive time in what might be its last rate decision under Chair Jerome Powell, as concerns have risen over the impact of the U.S.-Israeli war against Iran on oil prices and inflation.

During the two-day Federal Open Market Committee (FOMC) meeting, the central bank decided to leave the rate unchanged at the 3.5-3.75 percent range. The pause put the gap between the key rates of South Korea and the United States at up to 1.25 percentage points.

"Inflation is elevated, in part reflecting the recent increase in global energy prices," the Fed said in a statement, noting that developments in the Middle East are contributing to a "high level of uncertainty" about the economic outlook.

The decision to stand pat came as U.S. consumer prices in March rose 3.3 percent from a year earlier, marking the largest annual increase since May 2024, while oil prices have also surged amid the economic ramifications of the Middle East conflict.

Powell's term as Fed chair is set to expire on May 15, while his tenure as a Fed governor will continue through January 2028. A Senate confirmation process for Kevin Warsh, President Donald Trump's nominee for the top post, is in progress.

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