Fed Holds Rates Steady Amid Calls for Hike

The US Federal Reserve kept interest rates steady at its latest meeting, despite calls from three policymakers to raise them by a quarter of a percentage point.

The Fed's decision to hold rates at 3.50-3.75% for the fifth consecutive meeting was in line with economists' expectations, but financial markets still see a significant chance of an increase in September.

The three policymakers who dissented from the majority decision were Beth Hammack, president of the Federal Reserve Bank of Cleveland; Neel Kashkari, president of the Minneapolis Fed; and Lorie Logan, president of the Dallas Fed. They argued that higher rates were needed to combat high inflation.

In a press conference following the meeting, Fed Chair Kevin Warsh downplayed the dissenting views, saying 'I asked for a good family fight, and I got one.'