The Federal Reserve is expected to keep interest rates unchanged at its September meeting under Chairman Kevin Warsh, despite a rare three-way dissent at the last meeting. Since Warsh took over in March, the Fed has held rates steady at both meetings, with the most recent one seeing nine policymakers vote to hold and three vote to raise. Inflation cooled from June to July but remains at 3.5% year over year, above the Fed's 2% target, while the U.S. unexpectedly lost 23,000 jobs in July. Warsh has said he will not provide forward guidance, preferring to be circumspect in communications. The author expects the Fed to hold rates steady again in September.
