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By Song Sang-ho

WASHINGTON, July 29 (Yonhap) -- The U.S. Federal Reserve on Wednesday held its benchmark interest rate steady in a 9-3 decision amid continuing concerns over the economic impact of renewed fighting in the Iran war and U.S. President Donald Trump's calls to lower borrowing costs.

During the two-day Federal Open Market Committee (FOMC) meeting, the central bank decided to leave the rate unchanged at the 3.5-3.75 percent range, marking the fifth consecutive pause. The rate decision left the gap between the key interest rates of South Korea and the United States at up to 1 percentage point.

"Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East," the Fed said in a statement. "Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little."

In the rate-setting decision, the three participants -- Beth Hammack, Neel Kashkari and Lorie Logan -- preferred to raise the rate by a quarter percentage point, according to the Fed.

During a press availability earlier this week, Trump renewed his calls for the Fed to lower the rate, saying that the U.S. should have "the lowest interest rate in the world."

sshluck@yna.co.kr

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