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Fed votes 9-3 to hold interest rates steady as energy prices rise
Three Fed officials dissented, arguing for a quarter-point increase, while the Fed cited overall trends and a cooling inflation backdrop for its decision.
The US Federal Reserve held interest rates steady on Wednesday for the fifth time since December, voting 9-3 to keep policy unchanged despite renewed calls from President Trump to lower rates. The decision was split, with three voting against the hold.
According to the Guardian Business, the dissenting members preferred raising the rate by a quarter-percentage point, marking the first time in a decade that three board members shared dissent over a policy move. The outlet also reported that the Fed was navigating heightened inflation pressure.
Fed chair Kevin Warsh said the committee was less focused on any single data point and instead weighed broader inflation and labor market trends. He also pointed to the “family fight” dynamic inside the committee when discussing the big questions in monetary policy.
The Guardian Business linked the Fed’s dilemma in part to rising energy prices, describing a tenuous US-Iran peace deal that has helped push energy costs higher again. Two weeks earlier, Dallas Fed president Lorie Logan argued in public remarks for modestly higher rates, citing inflation risks skewed to the upside and a solid labor market.