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Fed Holds Rates Steady, Three Officials Dissent Favoring a Hike
Three regional presidents dissented as policymakers kept borrowing costs unchanged for a sixth straight meeting, citing inflation that has stayed above the 2% target for years.
- The Federal Open Market Committee voted 9-3 on Wednesday to maintain the federal funds rate between 3.5% and 3.75%, marking the fifth consecutive hold despite internal pressure for higher rates.
- Persistent inflation has remained above the Fed's 2% target for more than five years, while conflict in the Middle East adds economic uncertainty, though officials noted that activity expands at a solid pace.
- Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan dissented, preferring a quarter-point increase as they have been most explicit about the need for higher rates.
- Markets largely expected the hold, though 76% of traders now foresee a rate hike in September; New Fed Chair Kevin Warsh declared he has "no tolerance" for elevated inflation.
- Bank of America analysts expect three quarter-point hikes this year, potentially reaching 4.25% to 4.5%, as policymakers await Thursday's Commerce Department data on economic growth and inflation measures.
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Fed Keeps Rates Unchanged Despite Three Dissents, Expert Calls It Hawkish Hold with Fractured Committee
Get latest articles and stories on Business at LatestLY. The US Federal Reserve has kept its benchmark interest rate unchanged at 3.5 per cent-3.75 per cent, but the decision exposed growing differences within the Federal Open Market Committee (FOMC), with three policymakers dissenting in favour of a 25-basis-point rate hike amid persistent inflation concerns. Business News | Fed Keeps Rates Unchanged Despite Three Dissents, Expert Calls It Hawk…
·Mumbai, India
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Total News Sources335
Leaning Left48Leaning Right56Center120Last UpdatedBias Distribution54% Center
Bias Distribution
- 54% of the sources are Center
54% Center
L 21%
C 54%
R 25%
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