Fed Holds Rates, Dollar Falls as Warsh Does Not Vote for Hike

The Federal Open Market Committee voted 9-3 to keep the benchmark rate steady, contrary to market pricing that had assigned a 30% chance to a hike. Dissenting voters were Presidents Kashkari, Hammack, and Logan, who favored a rate increase due to lingering inflation concerns.

The dollar retreated following the decision, which was perceived as less hawkish after former governor Kevin Warsh—widely considered a hawk—did not vote for a hike. The outcome suggests the committee’s doves maintained the upper hand.

Treasury yields edged lower, and the euro pushed above the 1.10 level against the greenback.