Fed Keeps Interest Rates Steady Amid Divided Committee Vote

The Federal Reserve's rate-setting committee voted to keep its benchmark short-term borrowing rate unchanged at a range of 3.5 percent to 3.75 percent, following a closely watched meeting on July 29.

Three officials dissented from the decision: Dallas Fed President Lorie Logan, Cleveland Fed President Beth Hammack, and Minneapolis Fed President Neel Kashkari, all in favor of raising rates by a quarter point.

The dissent came against a backdrop of inflation still running above the Fed's target. The Consumer Price Index reading showed prices up 4.2 percent from a year earlier, with core inflation at 2.9 percent.

Fed Chairman Kevin Warsh acknowledged the depth of disagreement inside the committee, saying 'I asked for a good family fight, and I got one.'