Federal Reserve Warsh

The Federal Reserve left its key interest rate unchanged Wednesday despite persistently high inflation and a spike in energy prices caused by the Iran war. The Fed’s rate-setting committee reached the 9-3 decision after two days of deliberations, marking the fifth straight meeting at which the benchmark rate was kept at around 3.6%. Three Fed officials dissented in favor of a rate increase, and Fed Chair Kevin Warsh described the policy discussion to reporters as a “good family fight.” Inflation has been stuck above the central bank’s 2% target for more than five years and Wall Street still expects a rate hike in September.