Central Banks News

Fed holds rates as three policymakers push for a hike amid energy-price pressure

The Federal Reserve left its policy rate at 3.5%–3.75% at the latest meeting, marking a fifth straight hold, even as three officials—Neel Kashkari, Lorie Logan, and Beth Hammack—dissented in favor of a 25‑basis‑point increase. The decision kept the statement largely intact, noting inflation remains elevated due to energy shocks from Middle East tensions; June core inflation came in around 2.6%, suggesting inflation is easing but not yet on a firm path to the 2% target. Fed Chair Warsh reaffirmed the commitment to price stability while acknowledging policy challenges from supply shocks and energy prices.,