Fed Holds Fire on Interest Rates Despite Rising Inflation Pressure

The US Federal Reserve (Fed) kept its benchmark interest rates unchanged at between 3.5% and 3.75%, despite growing pressure for a tighter monetary policy to tackle inflation head-on.

The decision, made by the Federal Open Market Committee (FOMC), was approved by nine votes to three, marking an unprecedented level of dissent within the central bank's committee since a decade ago.

New Fed chair Kevin Warsh called for more confrontation in internal discussions and got it. He faced tough questioning from journalists about the apparent contradiction between his public statements and the decision to hold rates steady.