The Federal Reserve kept its benchmark rate unchanged at 3.50%–3.75% on Wednesday, but the decision drew an unusually large dissent as three policymakers voted to raise borrowing costs by a quarter-percentage point, the most opposition in a decade.
Beth M. Hammack, Neel Kashkari, and Lorie K. Logan formed the dissenting bloc after the central bank opted for a fifth consecutive hold since December 2025. The vote followed moderating consumer prices in June, when the CPI posted a 0.4% monthly decline — its first drop since April 2020 — though annual inflation remained at 3.5%, well above the 2% target.
Financial markets now expect a rate increase in September, while Brent crude has surged 6.6% to around $90 a barrel and average gasoline prices stand at $4.09 per gallon, underscoring the energy-driven price pressures Chair Kevin Warsh faces in only his second meeting at the helm.