‘No magic wand’ to tackle high prices, Fed boss says as US interest rates held

The Fed acknowledged that inflation remained "elevated", which it said was in part due to rising energy prices, but said US economic activity was expanding at a "solid pace despite uncertainty caused by the conflict in the Middle East".

Given the volatile situation in the Middle East, there was some speculation that the Fed may opt to raise rates in advance of future spikes in energy and food costs.75% on Wednesday, but concerns inflation could increase in the coming months due to the ongoing conflict in the Middle East remain.