Rising gas prices drove much of the inflation increase as renewed violence in the Middle East has kept oil prices above $100 a barrel, up from below $70 before the Iran war. But prices also rose outside of fuel costs.

The Federal Reserve kept its key rate unchanged Wednesday at about 3.9% despite stubbornly high inflation, while providing little hint about the central bank's next moves.

Fed chair Kevin Warsh said politics played no role in pause of interest rate hikes, despite inflation remaining above 3%

The US Federal Reserve left interest rates unchanged on Wednesday during its last board meeting before the midterm elections, keeping rates at one of the highest pre-election levels seen in over 20 years.

Two out of 12 board members voted against the pause, preferring to raise rates by a quarter point this meeting, the Fed board said in a statement.

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© Photograph: Brendan Smialowski/AFP/Getty Images

© Photograph: Brendan Smialowski/AFP/Getty Images

© Photograph: Brendan Smialowski/AFP/Getty Images

The Fed's Oct. 27-28 meeting will be the fourth of Chairman Kevin Warsh's tenure, which has been marked by questions regarding his independence from President Donald Trump, who appointed him earlier this year.