Fed holds rates at 3.5%-3.75% as 3 officials push for a hike

The Federal Reserve kept its benchmark interest rate unchanged at 3.5% to 3.75% on Wednesday, extending its pause for a fifth straight meeting as a rare three officials dissented in favor of a quarter-point increase. The split highlighted pressure on Chair Kevin Warsh, who took over in May and has pledged to return inflation to the Fed’s 2% target after more than five years above it. The central bank said inflation remains elevated even as the economy expands at a solid pace. Warsh signaled the Fed could still move if needed, while rising energy prices linked to the Middle East conflict added to concerns about renewed price pressure. US stocks fell after the decision.