Fed Holds Rates Steady Despite Dissenting Voices

The Federal Reserve voted to hold its benchmark interest rate steady at 3.5% to 3.75% on Wednesday, maintaining the policy target range established in January.

The decision was not unanimous, as three central bank officials dissented in favor of a quarter-point rate increase: Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan.

The hold puts an end to pre-meeting speculation that policymakers might move to raise rates. Expectations for a hike had been driven by views that Fed Chair Kevin Warsh would look to reinforce his inflation-fighting credentials early in his tenure.

By leaving borrowing costs unchanged, the Federal Open Market Committee now shifts market attention to its upcoming policy meeting in September.

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About Joe Palmisano

Joe Palmisano is editorial director of Connect Money, where he oversees daily coverage of alternative assets, direct investments, financial advisory and the economy. He brings three decades of experience as a financial journalist, analyst and portfolio manager. Before joining Connect Money, Palmisano wrote for The Wall Street Journal, covering foreign exchange, global fixed-income and equity markets. He later served as a senior research analyst and portfolio manager, producing market analysis and managing foreign exchange and U.S. equity portfolios for FX Concepts. His work has also appeared in SFO Magazine and CMT Association publications. Palmisano earned a bachelor’s degree in finance from The American University and holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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