The Federal Reserve left its benchmark interest rate unchanged Wednesday at a range of 3.5% to 3.75%, extending a five-meeting streak of no change. The decision came even as inflation has remained above the Fed’s 2% target for more than five years, and it marked only the second meeting under Chairman Kevin Warsh.[11][1]
In an unusual show of dissent, three hawkish regional Fed presidents voted against the move and instead backed a rate increase. Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Lori Logan all argued for higher rates.[11]
The Fed’s decision gives policymakers two more months to watch additional inflation data before the next move. June inflation eased somewhat, but officials are still watching risks that could push prices higher again, including rising oil prices, new tariffs and a surge in demand tied to the construction boom for artificial intelligence data centers.[11]
At a 2:30 p.m. news conference, Warsh said the Fed would remain focused on bringing inflation down. “We will, as I said before, absolutely achieve price stability,” he said. President Donald Trump also renewed pressure for lower rates this week aboard Air Force One, praising Warsh as “fantastic” while criticizing some Fed policymakers as “political.” Trump said rates should be lower and that the U.S. should have the lowest rates in the world.[11]
