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Federal Reserve holds rates unchanged, but three members voted to hike amid high prices
['Paul Wiseman', 'The Associated Press']
News – NBC 6 South Florida
The Federal Reserve left its key interest rate unchanged Wednesday, although three officials dissented in favor of higher rates as the central bank wrestles with how to deal with persistently high inflation.
The Iran war has generated uncertainty over the economic outlook and has driven energy prices higher, intensifying inflationary pressure and creating a quandary for Fed policymakers.
At a press conference following the rate decision, Fed Chair Kevin Warsh reiterated the Fed's commitment to combatting inflation.
The yield on the 10-year Treasury has risen from around 4.50% in mid-June to 4.64% just ahead of the Fed's rate decision.
But several Fed policymakers have been arguing that the Fed will have to raise rates to return inflation to the 2% target.