Fed Holds Rates Amid Split Vote, Future Hikes Loom

On July 30, the Federal Reserve decided not to change the main interest rate, keeping it between 3.5% and 3.75%.

Most of the 12 members agreed, but three said the rate should go up by a quarter point.

The Fed’s new chairman, Kevin Warsh, said the bank still wants inflation to stay at 2% and that rates might rise if prices stay high.

After the meeting, the price of two‑year U.S. Treasury bonds went down, showing investors expect the Fed to act later.

The data for June showed that consumer prices fell for the first time in six years, easing some pressure.

However, oil prices are still high because of the war in the Middle East, which could push prices up again.

The Fed said the economy is still growing and jobs are steady.

Some economists thought the Fed might raise rates, but the vote was split.

The Fed will look at new inflation data next week to decide what to do next.