The Federal Reserve left its key interest rate unchanged for the seventh-consecutive month despite lingering concerns about inflation rates that continue to pressure U.S. households’ finances.
The decision was largely expected by investors, who have seen markets begin to churn amid ongoing concerns about higher oil prices stemming from the war with Iran, and AI spending worries.
The Fed has historically used higher interest rates to curb overall economic activity and rein in inflation. But a debate over the best course for interest rates continues to swirl. With inflation stubbornly high, many market participants have called for higher rates that would put downward pressure on the pace of price increases.
Yet for many consumers and smaller businesses, current interest rates have already pushed the cost of borrowing money increasingly out of reach. This has cut into sales of items…
