Kevin Warsh faces key test as Fed set to vote on interest rates

The Federal Reserve left its key interest rate unchanged for the seventh-consecutive month despite lingering concerns about inflation rates that continue to pressure U.S. households’ finances. The decision was largely expected by investors, who have seen markets begin to churn amid ongoing concerns about higher oil prices stemming from the war with Iran and AI spending worries. Nine members of the Federal Open Market Committee voted to keep rates steady. But three policymakers saw the case for raising interest rates and chose to vote against the decision to stand pat on rates. It was the first time since 2016 that there were three dissents in the same direction over a policy change. The vote split reveals a growing internal divide over whether the central bank is moving too slowly to tamp down on inflation.