Dealing with inflation, not cutting rates, remains the Fed chief’s priority for now

EVEN as the US Federal Reserve left interest rates unchanged on Wednesday (Jul 30), the central bank sent mixed signals about its next move and caused a fair bit of confusion in global stock markets.

The Fed kept rates in their current range of between 4.25 per cent and 4.5 per cent at the end of its two-day policy meeting. 

In one clear sign that the Fed is preparing to pivot after five straight decisions to hold rates steady, two members of the rate-setting committee dissented – the first time these many central bank governors had publicly opposed the board’s action since 1993.