The Federal Reserve in the US made a decision. They will keep interest rates the same. The rate is between 3.5% and 3.75%. This happened on Wednesday.
Many things are happening in the economy. Oil prices are high. This makes people worry about prices going up. The Fed is careful. The economy has mixed signs. The job market is not clear. There are also world problems.
A war between Israel and Iran is a problem. It affects money markets around the world. Oil prices went up a lot. This is why people worry about prices. So, the Fed will not lower rates soon. The Fed boss said they do not know what will happen. It is too soon to know the effect.
The Fed's choice made markets change. Stock markets in Europe went up. Markets in Asia also did well. Investors are okay with oil worries. Oil prices fell a little.
The US dollar is weaker now. It fell for three days. Other money like the Euro is stronger. This can make things from other countries cost more in the US. Gas prices in the US are high. This affects what people can buy.
People thought the Fed would lower rates this year. But, economy problems changed this. Now, rates might go down next year. The Fed wants prices to be stable. Being careful is the plan now.