Fed Holds Interest Rates Steady Amidst Market Expectations

The Federal Reserve held interest rates steady on Wednesday at 3.50%-3.75%, despite dissent from three members of the policy-setting Federal Open Market Committee.

This decision may intensify questions about how U.S. central bank chief Kevin Warsh will deliver on his commitment to bring inflation back down to the 2% target.

The market reaction was mixed, with the S&P 500 paring declines and falling 0.24%, while the yield on benchmark U.S. 10-year notes rose by 3.9 basis points to 4.643%.