Fed Keeps Rates on Hold

The Federal Reserve held rates at 3.5% to 3.75% in Kevin Warsh's first meeting, keeping borrowing costs elevated while inflation remained above target.

1. Frame 1The Federal Reserve keeps U.S. rates at 3.5% to 3.75%, a market signal for borrowing costs under Warsh.
2. Frame 2All 12 voting members backed no change, the fourth straight meeting without moving the benchmark rate.
3. Frame 3Quarterly projections showed some officials still anticipate a rate hike by year-end, not a cut.
4. Frame 4Inflation was 3.8%, above target, while conflict-linked uncertainty complicated the committee's choice.
5. Frame 5Trump had pushed Powell for cuts and expected Warsh to deliver, but the unanimous vote held.
6. Frame 6Warsh's public promise is price stability with strong growth and employment, a harder case if inflation persists.