Federal Reserve holds interest rates steady as Powell addresses inflation and probes

The Federal Reserve, led by Chair Jerome Powell, decided to keep its key interest rate unchanged. Powell said it's too early to judge the full economic impact of the war in Ukraine and stated that the current situation is not 'stagflation,' a term from the 1970s. He also warned of a 'difficult situation' and flagged ongoing uncertainty.

Powell vowed to remain in his position until a Department of Justice investigation is finished. During the meeting, which previewed an increasingly divided Fed, Powell praised former Fed Chair Paul Volcker's 'willingness to resist' political pressure.