Fed Holds Rates Steady, Three Dissenters Wanted a Hike

• Federal Reserve held interest rates unchanged in the 3.5%-3.75% range, with a 9-3 vote.
• Three regional Fed presidents (Logan, Hammock, Kashkari) dissented, advocating for a rate hike.
• Equities (S&P 500, Nasdaq 100, Russell 2000) pared earlier losses, and US 2-year yields fell, suggesting market relief.

The Federal Reserve held interest rates steady, as widely expected, with a 9-3 vote. Three regional Fed presidents dissented, favoring a rate hike due to elevated inflation. Markets reacted with some initial volatility, but equities pared losses and short-term bond yields fell, indicating some relief despite the hawkish dissents.