Fed Holds Rates Steady as Inflation Remains Elevated

The US Federal Reserve held interest rates steady at its latest meeting, maintaining a target range of 3.50-3.75% for the fifth consecutive time.

The decision was unanimous among the majority of policymakers, but three members - Beth Hammack, Neel Kashkari, and Lorie Logan - dissented in favor of a quarter-percentage-point rate increase.

Fed Chair Kevin Warsh said the economy is showing 'impressive resilience' despite recent shocks, with inflation remaining elevated at 3.5% after easing from 4.1% in May.

Carter, head of fixed interest research at Quilter Cheviot, noted that the Fed has kept its option for a rate hike in reserve, and financial markets still see a significant probability of an increase in September.