Fed Holds Rates at 3.50%-3.75%, Three Officials Dissent for Hike as Warsh Vows 2% Inflation

The Federal Reserve maintained its benchmark interest rate in a range of 3.50% to 3.75%, but the decision came with a hawkish twist. Three voting officials dissented, pushing for an immediate 25-basis-point hike.

Governor Warsh stressed that there is “no soft target” and pledged to bring inflation back to the central bank’s 2% goal. The split vote underscores growing unease among some policymakers about price pressures.