Fed holds rates at 3.5%-3.75% as 3 officials push for hike
What's new: The 9-3 split was the first three-member dissent in one direction since 2016, signaling stronger hawkish pressure before September.
The Federal Reserve left its benchmark rate unchanged Wednesday at 3.5% to 3.75%, but three regional bank presidents broke ranks and backed a quarter-point increase. The Federal Open Market Committee voted 9-3, with Beth Hammack of Cleveland, Neel Kashkari of Minneapolis and Lorie Logan of Dallas favoring a hike as inflation remains above the Fed's 2% goal. The statement changed little from June, saying economic activity is expanding at a solid pace despite uncertainty tied in part to conflict in the Middle East. The split adds early pressure on Chair Kevin Warsh and underscores growing divisions inside the Fed as markets look ahead to a possible September move.