Federal Reserve holds interest rates steady amid resurgent inflation

Federal Reserve kept its benchmark rate at 3.5% to 3.75% after a widely anticipated decision, while nearly half of policymakers signaled support for a rate increase later this year. The FOMC's statement was shorter and simpler, removing the easing bias chatter that had appeared in prior guidance. New chair Kevin Warsh explained the tightening stance and emphasized data-focused decisions in his post-meeting briefing. The Fed noted inflation remains above the 2% goal, with energy-related price pressures contributing to the challenge. Analysts expect the policy path to stay restrictive as labor markets remain solid, keeping a high premium on incoming data.