The Fed Kept Rates Unchanged. Stocks Edged Up.

Stocks edged up on Wednesday after the Federal Reserve kept interest rates unchanged and Federal Reserve Chair Kevin Warsh said there are signs that financial conditions have tightened over the weeks since the central bank conducted a hike in September.

The Dow Jones Industrial Average gained 0.19%, while the tech-heavy Nasdaq Composite did so 0.27%. The S&P 500 climbed 0.28%.

Speaking in the press conference following the latest policy decision, Warsh said that "we have started to see some changes in financial and credit conditions; they have tightened for some businesses and households, much as we would expect."

"Market participants are becoming somewhat more discerning in their capital allocations," he added. Warsh went on to say that he won't describe current conditions as broadly "tight" but they are helping to create a path toward lower inflation.

The central bank kept rates unchanged on Wednesday, staying at 3.75%-4% in line with market expectations. The vote was not unanimous, with two voters dissenting.

In its statement following the meeting, the Federal Open Market Committee claimed that "economic activity is expanding at a strong pace" and "while uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient."

"Productivity growth is strong, and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little," the committee added.

However, it also noted that "inflation remains elevated" and the central bank will use upcoming information to " determine the policy stance appropriate to ensure a timely return of inflation to the Committee's 2 percent goal." "The Committee will deliver price stability," the document concluded.

In the geopolitical front, a new report claimed that Iranian leaders will take a proposal detailing nuclear concessions to the U.S. in exchange for sanctions relief to avoid a return to a full-fledged war with the U.S. and Israel to Supreme Leader Mojtaba Khamenei.

Axios detailed that the proposal, put forward by Qatar and supported by Pakistan, Saudi Arabia, Egypt and Turkey, would see Iran allowing UN inspectors to visit its nuclear sites in exchange for sanctions relief.

One possibility includes returning to an agreement reached with the International Atomic Energy Agency (IAEA), which allowed for the resumption of visits to nuclear sites but was later suspended after the UN Security Council reimposed snapback sanctions a month later.

Iran has been insisting that the U.S. first life its blockade of the country's ports and release frozen funds. However, Iranian officials said they will take the proposal to the supreme leader for approval in the coming days.

"The idea is that the Iranians will be able to say that they didn't give up the enriched uranium up front, and the U.S. will be able to say that it got some nuclear concessions from Iran," a source briefed on the matter told the outlet. The person went on to say that the White House will analyze the matter depending on whether Iran accepts it.