Fed Keeps Rates Steady Amid Rising Oil Prices and Dissent

The Federal Reserve kept interest rates steady at 3.5-3.75% for a second straight meeting under new Chair Kevin Warsh, but it was not without dissent.

The July 29 decision came on a 9-3 vote, the highest number of dissents in a decade, with Warsh saying he 'asked for a good family fight, and I got one.'

The Fed's decision to keep rates steady is significant because rising oil prices from conflicts in the Middle East are likely to show higher inflation when July's report is released.

Rising oil prices have already had an impact on energy costs, with gasoline decreasing by 9.7% from May to June and fuel oil decreasing by 9.2%, but that trend may reverse as crude oil has rebounded since June, sitting at just over $84 per barrel at the time of writing.

The Fed's decision not to provide forward guidance on interest rates is also noteworthy, with Warsh stating he 'doesn't believe that I should be previewing for you what a future decision might be.'