Fed Holds Steady Amid 'Family Fight' Over Rate Hikes

The US Federal Reserve held interest rates steady at 3.50-3.75 percent for the fifth straight meeting, despite growing pressure to raise rates to combat inflation.

Chair Kevin Warsh praised the 'family fight' among Fed policymakers that saw three regional presidents dissent from the majority and recommend a quarter-point rate hike.

The decision was seen as a victory for President Donald Trump, who has been pushing for lower interest rates to boost the economy despite rising inflation.

Warsh acknowledged the challenges posed by surging energy prices, which have contributed to a three-year high in US inflation at 4.1 percent year-on-year.