Briefly

UNITED STATES

Fed holds rates steady amid high energy prices

The Federal Reserve kept interest rates unchanged on Wednesday, but in its most divided decision since 1992, noted rising concerns about inflation in a policy statement that drew three dissents from officials who no longer feel the US central bank should communicate a bias toward lowering borrowing costs. A fourth dissent at the meeting favored a quarter-percentage-point rate cut."Inflation is elevated, in part reflecting the recent increase in global energy prices," the Fed said in its policy statement, a shift from previous language saying that inflation was just "somewhat" elevated. "Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook," it said. "In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent," the statement said.