Bank holds interest rates as energy and memory chips set to lift inflation

A majority of the central bank’s nine-strong Monetary Policy Committee voted in favour of keeping interest rates at 3.75%.

A majority of the central bank’s nine-strong Monetary Policy Committee voted in favour of keeping interest rates at 3.75%.

The Fed’s rate-setting committee reached its decision after two days of deliberations, marking the fifth straight meeting at which the benchmark rate was kept at around 3.6%.

Federal Reserve officials decided to keep interest rates unchanged, but a fractured vote reveals rising concerns about inflation.

The Federal Reserve has voted to keep interest rates steady at the 3.5% to 3.75% target range despite concerns about inflation and oil prices. The decision was not unanimous. CBS News MoneyWatch correspondent Kelly O'Grady breaks it down.

Elevated inflation partly reflects supply shocks that that have increased prices, including of energy, the Fed said.

The Federal Reserve held interest rates steady for a fifth straight time on Wednesday amid mounting pressure on the bank to stay ahead of another war-driven energy price shock. In a 9-3 decision, the Federal Open Market Committee (FOMC) maintained its baseline interest rate at a range of 3.5 percent to 3.75 percent. It