1 month ago
Fed Holds Rates, Three Dissent for 25‑bp Hike
The U.S. Federal Reserve decided not to raise interest rates this week, keeping them at 3.5% to 3.75%.
Most of the 12 members agreed, but three—Beth Hammack, Neel Kashkari, and Lorie Logan—wanted a small increase.
The Fed Chair, Kevin Warsh, said the debate was a "good family fight" and welcomed the discussion.
The Fed said the economy is growing, jobs are steady, but inflation is still above its 2% goal.
They also mentioned that the war in the Middle East is making energy prices higher, which adds to inflation.
Federal Reserve left benchmark interest rate unchanged at 3.5%–3.75% after a 9‑3 vote.
Three policymakers—Beth Hammack, Neel Kashkari, and Lorie Logan—voted for a 25‑basis‑point rate hike.
Chair Kevin Warsh described the debate as a "good family fight" and welcomed the discussion.
The Fed noted the economy is expanding, the labor market is stable, but inflation remains above the 2% target.
Uncertainty from the Middle East conflict was cited as adding inflationary pressure through higher energy prices.
- Who
- Federal Reserve policymakers, including Chair Kevin Warsh and dissenters Beth Hammack, Neel Kashkari, and Lorie Logan
- What
- Decision to keep benchmark interest rates unchanged, with three members voting for a 25‑basis‑point hike
- Where
- Federal Open Market Committee meeting
- When
- Wednesday, 2026
- Why
- To maintain monetary policy amid solid growth but high inflation and uncertainty from the Middle East conflict
Key facts
- Federal Reserve rate
- 3.5%–3.75%
- Vote result
- 9‑3 to hold
- Dissenters
- Beth Hammack, Neel Kashkari, Lorie Logan
- Inflation target
- 2%
- Middle East conflict impact
- higher energy prices
Quotes
Kevin Warsh
Federal Reserve Chair
“"That’s the purpose … I come into this meeting, even this press conference, heartened by what I’ve experienced the last two days. Most of our discussion were on the big questions that matter to the conduct of monetary policy, and it was a real family fight."”
financialexpress.com
Sources
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