The Federal Reserve is expected to keep rates unchanged for now despite high prices

The Federal Reserve, led by Chairman Kevin Warsh, maintained benchmark interest rates at 3.5%-3.75% for a fifth straight meeting via a 9-3 vote. Officials are weighing inflation against Middle East tensions and AI's economic impact. While economic activity continues expanding, a rate hike is widely expected at the next meeting in September. Warsh presented the Semi-Annual Monetary Policy Report to the Senate Banking Committee following this decision to keep rates unchanged for now.