The US Federal Reserve held interest rates steady at 3.5–3.75% as Chair Jerome Powell said inflation remains “somewhat elevated” due to tariffs. Washington: The Federal Reserve on Wednesday held interest rates steady, with Chair Jerome Powell citing tariffs as a factor keeping goods prices elevated. The Fed’s decision leaves the target range for the federal funds rate at 3.5 to 3.75 per cent. The Federal Open Market Committee “decided to leave our policy rate unchanged,” Powell told reporters. “These elevated readings largely reflect inflation in the goods sector, which has been boosted by the effects of tariffs,” Powell said.