US interest rates held as Fed boss says 'no magic wand' to tackle high prices

The boss of the Federal Reserve said there is no "magic wand" to ease the cost of living for Americans as it held interest rates steady for the fifth time in a row. Rates were left unchanged, as broadly expected, between 3.5% and 3.75% on Wednesday, but concerns remain that inflation could increase in the coming months due to the ongoing conflict in the Middle East. Fed chairman Kevin Warsh repeated his pledge to bring down inflation but admitted it would take time. Prices in the US have been rising at a rate above the Fed's 2% target for more than five years. Policymakers voted 9-3 in favour of keeping interest rates on hold, with the three voting against pushing for a small hike. The decision comes amid growing uncertainty over the impact of the ongoing conflict in the Middle East on global oil prices and prices for consumers. On Wednesday, Brent crude, the global benchmark for oil prices rose by more than 6% to above $89 a barrel. Despite inflation falling to 3.5% in the year to June, the rate prices are rising at remains above the Fed's 2% target. Last month's lower rate of inflation does not mean prices are falling, but that they are rising at a slower rate. Interest rate hike