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Fed holds benchmark rate steady amid dissent from three officials

Three Federal Reserve officials opposed the decision and backed a quarter-point rate increase, shifting attention to the next meeting in September.

Reported · Written up by our desk · Central Banks

The Federal Reserve voted to keep its benchmark interest rate steady at 3.5% to 3.75% on Wednesday, maintaining the policy target range it set in January, according to ConnectCRE.

The decision was not unanimous. Three central bank officials dissented and supported raising the rate by a quarter point, including Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan.

ConnectCRE said the hold ended pre-meeting speculation that policymakers might move to raise rates, after some views suggested Fed Chair Kevin Warsh could emphasize inflation-fighting early in his tenure.

By leaving borrowing costs unchanged, the Federal Open Market Committee shifted market focus to its next policy meeting in September.

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