The Federal Reserve held interest rates steady on July 29, but three regional bank presidents dissented from the 9-3 vote, pushing for a 25-basis-point increase instead. This marked the first organized hawkish revolt since 2016 and came during the first FOMC meeting under new Chair Kevin Warsh. The dissenters, Beth Hammack, Neel Kashkari and Lorie Logan, argued that inflation remains stubbornly above the Fed’s 2% target, citing supply shocks from Middle East energy disruptions. The federal funds rate now sits in restrictive territory at 3.5% to 3.75%, and Bitcoin and Ethereum markets reacted with notable sensitivity to this hawkish hold signal.
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