Fed Holds Rates, But Three Hawks Suggest Tightening Isn't Over Yet

The Federal Reserve's decision to hold interest rates steady may have been expected by some, but the vote count tells a different story. Three FOMC members dissented, pushing for an immediate 25-basis-point increase.

This rare level of dissent sends a clear signal: the central bank isn't done tightening, even if the majority chose to wait this time.

The committee voted 9-3 to keep the federal funds rate target range at 3.50%, 3.75%. The FOMC statement noted solid economic expansion but acknowledged that inflation remains elevated relative to its 2% goal.