Fed Leaves Rates Unchanged, Markets Priced for Hike

The US Federal Reserve, led by Chairman Kevin Warsh, left interest rates unchanged at its latest policy meeting. The decision was met with a mixed response from markets and economists, who were expecting a rate hike to combat rising inflation.

Warsh emphasized the Fed's commitment to bringing down inflation, which has been above the 2% target for over five years. He noted that the central bank would not hesitate to act if necessary, but declined to provide any specific guidance on what action would be needed to contain inflation.

The decision was a split one, with three of the 12 FOMC members dissenting from the decision to leave rates unchanged. These dissenters wanted a quarter-percentage-point hike instead.