On Wednesday, the US Federal Reserve decided to keep interest rates unchanged at 3.5%-3.75% for the third consecutive meeting, reflecting a cautious stance in light of rising global risks, particularly from the ongoing conflict in West Asia which has led to higher energy prices. The Fed acknowledged that inflation remains elevated, partly due to these rising energy costs, while economic activity continues to expand at a solid pace despite the geopolitical uncertainties. This decision was anticipated by markets, as the Fed prefers to avoid aggressive reactions to short-term volatility. Fed Chair Jerome Powell is expected to address the media later, marking a pivotal moment as his term ends on May 15. Meanwhile, the nomination of Kevin Warsh as the next Fed chair has advanced, raising discussions about the central bank's independence, especially given President Donald Trump's recent criticisms of Powell. For emerging markets like India, the Fed's pause is seen as neutral in the short term, potentially stabilizing capital flows, although high crude oil prices continue to pose inflation risks.