The Federal Reserve of the USA has decided to keep the benchmark interest rates unchanged, in the context of rising oil prices and high inflation.

The Federal Reserve of the USA (Fed) has decided, following a divided vote meeting, to maintain the benchmark interest rates in the range of 3.5% – 3.75%, for the fifth consecutive time. This decision comes against the backdrop of rising oil prices, caused by tensions in the Middle East.

Fed Chairman, Kevin Warsh, emphasized that inflation remains high, and the Fed's inflation target is 2%.

Although recent data indicates a decrease in core inflation, Fed officials believe this could be temporary, considering the rise in energy prices. Additionally, several Fed officials have suggested that if inflation does not continue to decrease, further interest rate hikes may be necessary.

Warsh acknowledged the difficulties in calibrating monetary policy in an uncertain economic context but reaffirmed the Fed's commitment to price stability.