Bonds & Rates
Home›Bonds & Rates›Central Banks›Fed holds rates steady as three officials dissent on h…
Fed holds rates steady as three officials dissent on hike
The decision left the policy range unchanged for a fifth straight meeting, and Treasury yields surged, with the 30-year yield hitting its highest level since 2007.
The Federal Reserve kept its target interest rate range at 3.50% to 3.75% on Wednesday for a fifth consecutive meeting, in a decision Yahoo Finance described as among the closest in years.
The split reflected ongoing concerns about inflationary pressures linked to the war in Iran and AI bottlenecks, with three Fed officials dissenting and arguing for a 25 basis point rate increase.
Fed Chairman Kevin Warsh said he wanted a "good family fight," and he also pushed back on providing forward guidance, while noting that tighter financial conditions are already helping do some of the Fed's work.
According to Yahoo Finance, bond markets reacted sharply as yields spiked, sending the 30-year yield to its highest level since 2007, while stocks extended losses and the Dow ended the day down 1,100 points, its worst session in more than a year.
Latest closeDow Jones 52,485.03 ▲0.5%