Growing Dissent Within FOMC The Federal Open Market Committee (FOMC) maintained the policy rate unchanged at 3.50%-3.75% in a 9-3 vote, marking the first meeting under Chair Kevin Warsh with three dissents—the largest number of dissenting votes for any Fed chair so early in their tenure since 1970. While the decision to keep rates unchanged was largely on expected lines, the split vote reflects growing differences within the committee regarding the appropriate level of policy rates. Beth Hammack, Neel Kashkari, and Lorie Logan voted in favor of a 25bps rate hike, citing persistent inflationary pressures. The policy statement remained largely unchanged from June, continuing to emphasize that economic activity was expanding at a solid pace, productivity growth and capital investment remained strong, and job gains were in pace with labor force growth. It also noted that inflation remained elevated relative to the Federal Reserve's 2% objective, partly reflecting supply-side shocks, in...