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Wed, 17 Jun 2026

Wed, 17 Jun 2026 Fed holds US interest rates steady as uncertainty over Trump's Iran deal remains

The Federal Reserve held rates between 3.5% and 3.75% after Kevin Warsh's first meeting in charge of the central bank.

* US interest rates remain steady at between 3.5% and 3.75%.
* Fed governors were split on whether to raise or keep rates steady, but ultimately decided unanimously to maintain current levels.
* The decision is aimed at taming inflation, which has risen to 3.8%, driven by the war in Iran and energy costs.
* The Fed's statement was significantly shorter than usual, reflecting Kevin Warsh's promise of clearer communication from the central bank.
* Nine out of 18 Fed officials predicted an interest rate hike this year, while only one expected a cut.
* Trump expressed "it's alright... whatever" about the decision, but praised Warsh as "a very good guy".
* The Fed has launched task forces to examine and reshape its practices, including communication and monetary policy decisions.