Fed Keeps Rate Unchanged Amid Persistent Inflation Worries

The Federal Reserve kept its benchmark interest rate unchanged at around 3.6%, despite expectations from some economists and Wall Street analysts for a quarter-point hike.

However, three regional Fed bank presidents dissented in favor of higher rates to combat persistently high inflation, which has been above the central bank's 2% target for over five years.

The rate-setting committee reached its decision after two days of deliberations, and Fed Chair Kevin Warsh praised the 'good family fight' among policymakers during the meeting.

Warsh also emphasized that the Fed has no 'magic wand' to solve inflation quickly and encouraged financial markets to make their own judgments about interest rates.