▲ New Federal Reserve Chair Kevin Warsh delivers a speech during his swearing-in ceremony at the White House in Washington on May 22, 2026, in this photo released by Reuters. (Yonhap)

FOMC-rate decision

Fed holds key interest rate steady for 4th straight time under new Chair Warsh

By Song Sang-ho

WASHINGTON, June 17 (Yonhap) -- The U.S. Federal Reserve on Wednesday held its benchmark interest rate steady for the fourth consecutive time, marking its first rate decision since new Chair Kevin Warsh took office last month, amid lingering concerns over the economic fallout of the Middle East conflict.

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 left the gap between the key rates of South Korea and the United States at up to 1.25 percentage points.

The meeting came a week after the U.S. Labor Department reported that the consumer price index rose 4.2 percent in May from a year earlier -- a rise largely driven by higher energy prices caused by the U.S.-Israeli war against Iran. It marked the largest annual increase since 2023.

Warsh was sworn in as the new Fed chair, succeeding Jerome Powell on May 22, who had repeatedly been slammed by U.S. President Donald Trump for not lowering interest rates.

At the swearing-in ceremony, Warsh vowed to lead a "reform-oriented" central bank and underscored his commitment to achieving the central bank's dual mandate of promoting price stability and maximum employment with "independence and resolve."

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