Fed Holds Rates Steady as Three Policymakers Push for Hike

The US Federal Reserve has held interest rates steady for the fifth consecutive meeting, keeping its target range at 3.50-3.75%.

Economists had largely expected this decision, but financial markets still see a significant chance of an increase in September.

Three policymakers - 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 - dissented from the majority decision and called for a quarter-percentage-point rate hike.

Responding to their dissent, Fed Chair Kevin Warsh said he had asked for a 'good family fight' and got one. He described the US economy as showing 'impressive resilience, even with recent shocks', but noted that inflation remains elevated at 3.5% after easing from 4.7% in May.