Fed Keeps Rates Unchanged Despite Elevated Inflation

WASHINGTON (AP) — The Federal Reserve kept its key rate unchanged Wednesday at about 3.9% despite stubbornly high inflation, while providing little hint about its next moves. The Fed meeting took place less than a week before the midterm elections, which have focused heavily on concerns about the cost of living and affordability, but Fed Chair Kevin Warsh denied politics affected the central bank’s decision. The Fed wants to return inflation to its 2% target, which it typically does by raising its short-term interest rate. Warsh dismissed the notion that not raising rates would cause the public to lose faith in the Fed.