New York: The US Federal Reserve is keeping the benchmark interest rate unchanged at 3.5 per cent to 3.75 per cent in the face of inflation threats. Warsh was handpicked to lead the Fed by President Donald Trump, who had feuded with his predecessor Jerome Powell over his refusal to lower interest rates. "I know he'd love to see lower interest rates, but he's got a board, and it's a political board, and they want to keep rates up," he said. This was Warsh's second time presiding over the rate-setting meeting of the FOMC since he took over in May, and the rates were again held steady. After the meeting, Warsh reiterated his commitment to the goal of bringing inflation down to 2 per cent, which limits his option to lower the interest rate.