The Federal Reserve left its benchmark interest rate unchanged at 3.50%–3.75% on Wednesday, marking the fifth consecutive meeting without a policy change and the second under Chair Kevin Warsh.
The vote, however, was not unanimous.
While the Federal Open Market Committee ultimately opted to leave rates unchanged, three policymakers — Beth M. Hammack, Neel Kashkari, and Lorie K. Logan — dissented in favor of a 25-basis-point rate hike, marking one of the most contested monetary policy decisions in recent Federal Reserve history.
“Inflation remains elevated relative to the Committee’s 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy,” the Fed stated.
Markets are pricing in tighter policy ahead.
