Warsh vows not to 'waver' on inflation as divided Fed leaves rates unchanged
The US Federal Reserve, led by Chair Kevin Warsh, held interest rates steady at 3.50-3.75% despite dissent from three regional bank presidents. The decision reflects ongoing concerns about inflation, which remains above the 2% target due to global fuel prices and AI-related investment demand.
Why it matters
The Fed's decision signals a cautious approach to monetary policy, balancing the need to curb inflation against the economic pressures of a changing technological and geopolitical landscape.
Despite delivering no rate cuts, US President Donald Trump stood by Fed Chair Kevin Warsh, calling him a "brilliant guy".
Kevin Warsh enters for the morning session at the ECB Forum, in Sintra, Portugal, Jun 30, 2026. (Photo: REUTERS/Pedro Rocha)
WASHINGTON: The Federal Reserve held interest rates steady on Wednesday (Jul 29), a choice that may intensify questions about how US central bank chief Kevin Warsh will deliver on his commitment to bring inflation back down to the 2 per cent target.
The widely expected decision to leave the benchmark interest rate in the 3.50 to 3.75 per cent range drew dissents from three of the 12 members of the policy-setting Federal Open Market Committee who "preferred" a quarter-percentage-point hike at this meeting.
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