Fed officials split 9-3 on rates, exposing growing divisions over how aggressively to tackle stubborn inflation. Stocks, gold, and Treasury yields react as investors shift focus to a possible Fed rate hike in September.
The Federal Reserve has kept its benchmark interest rate unchanged for a fifth consecutive meeting, holding the range at 3.50% to 3.75%. The decision matched what markets had widely expected, yet the mood inside the meeting room was anything but settled. Chair Kevin Warsh was quick to reject the word 'pause'. He told reporters the committee had instead carried out a rigorous review of the economic picture, and that Wednesday's meeting marked the start of a longer process rather than its conclusion.
