Seoul: The U.S. Federal Reserve has maintained its benchmark interest rate in a 9-3 decision, reflecting ongoing concerns regarding the economic implications of renewed conflict in the Middle East and President Donald Trump's demands for reduced borrowing costs.

According to Yonhap News Agency, the Federal Open Market Committee (FOMC) concluded its two-day meeting with the decision to keep the rate unchanged at the 3.5-3.75 percent range. This marks the fifth consecutive pause in rate adjustments and maintains the gap between South Korea's and the United States' key interest rates at up to 1 percentage point.

The Federal Reserve noted in a statement that economic activity is expanding at a consistent pace despite uncertainties, partly due to the Middle East conflict. It highlighted strong productivity growth and capital investment, along with steady job gains and an unchanged unemployment rate.

During the rate-setting meeting, three participants-Beth Hammack, Neel Kashkari, and Lorie Logan-expressed a preference for a quarter percentage point increase in the rate, as reported by the Fed. Earlier this week, President Trump reiterated his call for lower rates, stating that the U.S. should aim for "the lowest interest rate in the world."