Fed Holds Rates at 3.50%-3.75% While Revealing Internal Split on Rate Hikes

According to Federal Reserve minutes released on July 8, the Fed's policy committee unanimously held interest rates steady at 3.50% to 3.75% during Chair Kevin Warsh's first meeting, though the decision revealed internal disagreement over whether a rate increase is still warranted this year. All 12 voting members supported the hold, but the minutes showed some participants had argued for a hike while citing persistent inflation risks tied to tariffs, Middle East energy costs, and artificial intelligence infrastructure spending.

Nine of 19 officials projected at least one rate increase before the end of 2026, reversing earlier projections that ruled out hikes. Bitcoin (BTC) traded near $62,240 on Wednesday, down 2.7% over the past 24 hours, as markets digested the hawkish tone of the release. The next Federal Open Market Committee meeting is scheduled for July 28-29.