Fed Holds Rates at 3.5%-3.75%; Three Dissenters Favor Quarter-Point Hike
The FOMC voted 9-3 to keep the federal funds rate steady, with Logan, Hammack, and Kashkari dissenting. Chair Warsh stressed the hold does not reflect inaction on inflation.
The Federal Open Market Committee opted to maintain the federal funds rate at 3.50%–3.75%, though the decision was not unanimous. Three regional Fed presidents—Lorie Logan of Dallas, Beth Hammack of Cleveland, and Neel Kashkari of Minneapolis—dissented, each preferring a quarter-point increase.
Chairman Kevin Warsh pushed back against any perception of inertia, insisting the hold was a deliberate policy choice. He reiterated the central bank's resolve to bring inflation under control, signaling that further tightening remains on the table if price pressures persist.
The split vote highlights growing division within the committee as some members argue for preemptive action. Markets will parse upcoming data and minutes for clues on the path ahead.
Source: First Squawk