The US Federal Reserve, following its meeting on July 28–29, left the key interest rate unchanged — in the range of 3,5–3,75%. The decision was made by nine votes to three.
Three regional Fed presidents — Beth Hammack from Cleveland, Neel Kashkari from Minneapolis, and Lorie Logan from Dallas — voted for a quarter-point rate hike. They had earlier signaled readiness to tighten policy to combat high inflation.
Inflation in the US remains above the target of 2% for more than five years. The decision was influenced by the consequences of the conflict in Iran, rising energy prices, technology companies' spending on artificial intelligence, and the Trump administration's tariffs.
Fed Chair Kevin Warsh emphasized his commitment to fighting inflation at a press conference. "We don't have a magic wand," he said. "This is not something we can do in days or weeks."
Warsh noted that he welcomed active debate in the committee. "I asked for a good family quarrel — and I got it," he joked.
The Jackson Hole symposium, held on August 27–29, became a platform for discussing these issues. Several Fed officials expressed concern that current policy is not sufficiently restraining inflation.
Kansas City Fed President Jeffrey Schmid noted that the rate does not provide the necessary restraint. Chicago's leader Austin Goolsbee and Cleveland's Beth Hammack also warned of risks of further price increases.
Markets await Warsh's speech on Friday.
While economists and traders assess the chances of policy tightening by the end of the year, the Fed continues to monitor data. Future decisions depend on inflation dynamics and economic growth.
