1 month ago
Fed Holds Rates Amid Iran War‑Driven Inflation Split
The U.S. Federal Reserve met on July 29 to decide what to do with interest rates.
Most of the 12 members said the current rate of 3.5% to 3.75% was fine.
But three members from Cleveland, Dallas and Minneapolis banks wanted to raise it by a quarter point because prices were going up.
The Fed Chair, Kevin Warsh, said jobs were good but prices were still a worry.
The decision shows the Fed is watching how the Iran war is making things more expensive.
Fed left the federal funds rate unchanged at 3.50%‑3.75% for the fifth straight meeting.
Three policymakers from Cleveland, Dallas and Minneapolis banks voted to raise rates by 0.25 percentage point.
Nine of the 12 FOMC members agreed the current rate was appropriate, reflecting a split.
Fed Chair Kevin Warsh said the economy remained resilient in employment but inflation remained a major concern.
The decision came amid rising inflation pressures tied to the Iran war, prompting debate over monetary policy tightening.
- Who
- Federal Open Market Committee members, including Fed Chair Kevin Warsh
- What
- Decided to keep the federal funds rate unchanged with a 9‑3 split on raising rates
- Where
- Washington, D.C., at the Fed’s policy meeting
- When
- July 29, 2024
- Why
- Inflation concerns linked to higher energy and commodity prices from the Iran war
Key facts
- Federal funds rate range
- 3.50% - 3.75%
- Decision
- Hold
- Vote split
- 9-3
- Date
- July 29, 2024
- Inflation concern source
- Iran war price pressures
Quotes
Kevin Warsh
Federal Reserve Chair
“"We're doing pretty well collectively as a country, as policymakers on the full employment side," Warsh said after the meeting. "But we're doing considerably less well on prices. That's why we describe them as elevated and that's what's taken most of our discussion in terms of transmission mechanisms of monetary policy."”
wionews.com
Sources
Related news
Fed Officials Renew Inflation Warnings as Rate-Hike Bets Return
July Fed Minutes May Shape September Rate Decision
US Inflation Slows to 3.4% Despite Iran War Oil Prices
Warsh Signals Possible Rate Hikes as Inflation Stays Above Target
Warsh Weighs Rate Cut as Inflation Keeps Pressure High
Warsh Keeps Inflation Central, Warns More Fed Action Needed
AI Chipflation and Tariffs Drive U.S. Inflation Higher
Fed Holds Rates, Three Dissent for 25‑bp Hike
Journalist Assaulted By Mob Outside Minneapolis Federal Building
