Fed Holds Rates Steady Amid Inflation Concerns

The Federal Reserve maintained its benchmark interest rate at 3.50%-3.75% on Wednesday, despite expectations of a quarter-percentage-point hike.

Three policymakers from the Federal Open Market Committee (FOMC) dissented in favor of raising rates, citing concerns about inflation, which has been above the central bank's target for over five years.

The FOMC noted that economic activity is 'expanding at a solid pace,' but emphasized that job gains have kept pace with the workforce and the unemployment rate remains relatively stable.

With no change in interest rates, financial markets are left wondering if Fed Chairman Kevin Warsh will deliver on his commitment to bring inflation back down to 2%.