Fed Keeps Interest Rates Steady Amid 'Family Fight' Over Inflation

The US Federal Reserve kept interest rates steady at 3.50-3.75 percent for the fifth consecutive meeting, with Chair Kevin Warsh describing it as a 'family fight' among policymakers.

Three regional Fed presidents dissented from the majority vote, calling for a quarter percentage point rate hike to combat surging inflation.

Warsh denied any reticence in taking action against high prices, saying the economy was showing 'impressive resilience' despite recent shocks.

US inflation has spiked on the back of President Donald Trump's war on Iran, with energy and fertilizer prices skyrocketing due to his tariff policies.

The Fed's preferred inflation gauge hit 4.1 percent year-on-year in May, with fresh data due later this week.