The Federal Reserve kept interest rates steady, reflecting caution as officials weighed the risk that inflation could rise again. Oil prices remained high and the Iran conflict added uncertainty, making policymakers wary of cutting rates too soon. This leaves US borrowing costs elevated for consumers and businesses, which may slow spending and investment, but also helps the Fed keep pressure on inflation. The decision suggests rate cuts are less likely in the near term unless inflation clearly eases or the economy weakens. It also comes at a sensitive moment, with Jerome Powell potentially chairing his final meeting and Kevin Warsh moving closer to succeeding him. Market reaction was muted ahead of the decision, with investors focused on whether the Fed would signal higher inflation risks or a longer pause in rates.