Fed Holds Rates Steady as BOJ Signals More Hikes Ahead

The Federal Reserve held interest rates steady at 3.5%-3.75% after its July 29-30 meeting, despite three members voting for a quarter-point hike.

The 9-3 vote indicates that some Fed officials think more action is needed to combat inflation.

Meanwhile, the Bank of Japan kept its rate at 1%, but warned that underlying inflation could exceed its 2% target for the first time in history.

The BOJ's decision came after an 8-1 vote, with the majority citing higher energy costs and resilient domestic consumption as drivers behind their decision.