The US Federal Reserve has opted to leave interest rates steady in its final decision before the upcoming midterm elections. The move follows last month's rate hike—the first in three years to 3.75%-4%—aimed at curbing elevated inflation.
Today's decision was not unanimous, with two of the 12 board members voting to raise rates. Following the announcement, Fed Chair Kevin Warsh stated that despite "geopolitical developments," the US economy is resilient but inflation remains elevated.
Central bank officials noted that interest rates impact many parts of our personal finances, including mortgages, car loans and student debt. Central banks often raise rates when inflation is too high.
With the midterm elections next week, cost of living is at the top of Americans' minds as they prepare to vote for their representatives. Households are feeling the pinch of rising prices at the petrol pump and in the supermarket, while further rate hikes have been hinted at for later this year.
