Federal Reserve leaves interest rates unchanged as Warsh era begins

Warsh succeeded Jerome Powell in May to become the 17th chair of the Federal Reserve

Eric Revell / FOXBusiness

The Federal Reserve on Wednesday announced that it will hold interest rates steady due to concerns about elevated inflation amid the war in Iran, as Fed Chair Kevin Warsh's tenure leading the central bank begins in earnest.

Fed policymakers voted 12-0 to leave the benchmark federal funds rate unchanged at its current range of 3.5% to 3.75%. The move follows the central bank's decision to hold rates steady in January, March and April following three successive 25-basis-point rate cuts in September, October and December to close out last year.

The Federal Open Market Committee (FOMC), the central bank's panel responsible for monetary policy moves, noted in its statement that inflation remains elevated above the central bank's 2% goal, which it said was "in part reflecting supply shocks that have driven price increases in certain sectors, including energy." 

They also noted that job gains have kept pace with the workforce, while reiterating support for the dual mandate of price stability and maximum...Read more, and see video here.