The U.S. Federal Reserve (the United States' central bank) held its benchmark interest rate unchanged at 3.5–3.75% for the third consecutive time on Wednesday, citing rising inflation driven in part by surging global energy prices linked to the ongoing U.S.-Israeli war against Iran. U.S. consumer prices rose 3.3% year-on-year in March — the steepest annual increase since May 2024 — while the Fed warned that Middle East developments are creating a "high level of uncertainty" for the economic outlook. The decision may be the last under Chair Jerome Powell, whose term expires on May 15, with Senate confirmation proceedings underway for Kevin Warsh, President Trump's nominee to lead the central bank.