Fed keeps rates steady as three officials push for hike

The Federal Reserve held its policy rate at 3.5%–3.75% for the fifth straight meeting amid rising oil prices tied to Middle East tensions, with three policymakers—Neel Kashkari, Lorie Logan and Beth Hammack—dissenting in favor of a 25-basis-point increase. Officials maintained a commitment to price stability, noting inflation remains elevated even as core inflation cooled modestly (around 2.6% in June). The dissent signals the risk that a rate hike could reemerge if energy-driven price pressures persist.