Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeNewsEconomyU.S. Federal Reserve holds rates steady with three dissenters calling for hikeIt is rare for that many FOMC members to differ from the majority's voteAuthor of the article:Last updated 4 hours ago You can save this article by registering for free here. Or sign-in if you have an account.The United States Federal Reserve voted 9 to 3 to hold its interest rate steady Wednesday. Photo by Kevin Dietsch/Getty ImagesFederal Reserve officials left interest rates unchanged, but a fractured vote signalled growing conviction among some policymakers that higher rates are needed to curb resurgent inflation.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe Federal Open Market Committee voted 9-3 to hold the benchmark federal funds rate in a range of 3.5 per cent to 3.75 per cent. Dallas Fed President Lorie Logan, Cleveland’s Beth Hammack and Minneapolis Fed chief Neel Kashkari dissented in favour of raising rates by a quarter percentage point.The committee’s post-meeting statement was otherwise identical to the one issued following their June meeting. Officials repeated their pledge to “deliver price stability.”SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againThe vote marked the fifth straight time officials have opted to leave rates unchanged. But the dissents suggest it could become more challenging for Fed Chairman Kevin Warsh, who took the helm in May, to continue holding if inflation fears grow.Warsh is scheduled to take questions from reporters at 2:30 p.m. in Washington. The S&P 500 pared losses following the decision. Two-year Treasury yields fell.Warsh has vowed to restore inflation to the Fed’s 2 per cent target, but stopped short of saying he would raise rates to do so.Several officials have said policy is well positioned for the moment, but also signalled they could back rate increases if price pressures don’t ease soon. The Fed’s preferred inflation gauge has accelerated in recent months, hitting 3.4 per cent in the year through May. Officials will get fresh inflation data Thursday.A weaker-than-expected reading of inflation in June took some pressure off policymakers to raise rates this week. US consumer prices fell last month for the first time in six years as gasoline prices declined during a pause in the Iran war. A separate report showed producer prices also rose by less than expected last month.Still, officials are facing mounting price pressures after a re-escalation of the war sent Brent crude soaring past US$100 a barrel. While oil prices have declined again in recent days, Brent remained near US$90 Wednesday morning.Uncertainty around the conflict, combined with a new slate of tariffs and an AI-fueled demand boom, have added to fears inflation could remain elevated for an extended period.The labour market, meanwhile, has seen months of modest but steady employment growth and a stable unemployment rate.That combination prompted Logan earlier this month to call for modestly higher rates. Hammack also chimed in, saying inflation was a bigger concern than employment.The Fed’s post-meeting statement repeated that economic activity is expanding at a “solid pace,” and again noted capital investment and productivity growth are strong. Officials also continued to characterize inflation as elevated relative to the central bank’s 2 per cent target.A few economists predicted before the meeting that Warsh might surprise investors by backing a rate increase. Pricing in federal funds futures put the odds as high as 40 per cent in the days before the gathering.Some Fed watchers judged such a move would be politically astute, given that a rate hike closer to the November midterm elections could prompt blowback from President Donald Trump.Trump has repeatedly called for lower rates, including this Monday. Warsh, whom Trump nominated for the Fed job earlier this year, has said he would keep policy decisions independent of political influence. 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