US Fed holds interest rates steady as tensions in Middle East remain high

Policymakers at the US Federal Reserve on Wednesday kept their key interest rates unchanged. They have seen a spike in energy costs related to the conflict with Iran. The Fed has once again set the figure between 3.5 and 3.75 percent. It has now kept the rate unchanged for two straight meetings, and it says it expects to cut rates just once the remainder of the year.

Chair Jerome Powell said at a news conference: "The implications of events in the Middle East for the US economy are uncertain. In the near term, higher energy prices will push up overall inflation, but it is too soon to know the scope and duration of the potential effects on the economy."