Federal Reserve holds rates steady as Chairman Warsh reaffirms 2% inflation target

The Federal Reserve voted 9-3 to keep its benchmark interest rate unchanged between 3.5% and 3.75%. Three committee members dissented, advocating for a quarter-percentage-point rate increase to further curb price pressures.

Following the decision, Federal Reserve Chairman Kevin Warsh stated that the effort to lower inflation is ongoing. He emphasized the central bank's firm commitment to its official target, asserting that "there is no soft inflation target, there is no soft implicit target, not on this committee’s watch," and reiterated that the goal remains strictly 2%. Warsh added that the fight to bring down inflation has just begun despite holding rates steady during this meeting.

Sources: Bloomberg.