The Federal Reserve maintains 3.75 percent benchmark rate amid supply shocks

The Federal Reserve benchmark interest rate will remain at 3.75 percent for a good while. Cleveland Federal Reserve President Beth Hammack said the current rate is good amid uncertain conditions. The Fed is monitoring energy prices, consumer spending, and the impact of tariffs and the war in Iran. Hammack own noted that supply shocks occurring on the back of already-elevated inflation complicate the monetary policy response. The Fed will stay patient to see how data flow through.