Fed meeting live: Fed Chairman Warsh gets the 'good family fight' he asked for as 3 officials dissent

The Federal Reserve held interest rates steady in a range of 3.50%-3.75% for the fifth meeting in a row on Wednesday, in one of the closest decisions to call in years.

Inflationary pressures arising from the war in Iran and AI bottlenecks have divided Fed officials in recent months. Three Fed officials dissented on the decision, preferring to raise rates by 25 basis points.

"I asked for a good family fight, and I got one," Fed Chairman Kevin Warsh said at a press conference.

Here are a few more takeaways from the meeting and post-decision press conference:

Fed policy statement doesn't change: The Fed reaffirmed its statement from the previous meeting, highlighting how the central bank intends to be more "parsimonious with what information they provide," according to Moody's chief economist Mark Zandi.

Warsh's comments on inflation have hawkish tilt: Warsh emphasized that the Fed won't hesitate to combat inflation if prices continue to rise, insisting that there's "no soft inflation target."

Warsh tries to recalibrate relationship with markets: Warsh continued to push back on giving forward guidance to markets but noted that tightening in financial markets is doing some of the Fed's job for it. Warsh also committed to giving press conferences for the remainder of 2026.

The reaction: Treasury markets reacted strongly as bond yields spiked, sending the 30-year yield (^TYX) to its highest level since 2007. Stocks also accelerated losses on Wednesday, and the Dow closed 1,100 points lower in its worst day in over a year.

President Trump also weighed in on the decision, expressing support for Warsh but calling the central bank "political."