Fed Holds Rates Steady, Three Dissenters Wanted a Hike

The Federal Reserve held interest rates unchanged at 3.5%-3.75% in a 9-3 vote, with Logan, Hammack, and Kashkari dissenting in favor of a hike. The statement nearly matched June's, noting solid economic activity, elevated uncertainty from the Middle East, and persistent inflation. Markets saw a modest relief rally, with the S&P 500 trimming losses and the Nasdaq slightly down, while two-year yields edged higher. Apple shares hit a new record high above $5 trillion, attributed to its lack of capital expenditures compared to heavy AI spending by other tech firms. - Fed holds rates unchanged at 3.5%-3.75%, with three regional presidents dissenting for a hike. - Statement nearly identical to June, citing solid activity, elevated uncertainty, and inflation above 2%. - S&P 500 erased some losses after the decision, Nasdaq still slightly negative. - Two-year yields rose modestly, reflecting reduced probability of a rate hike. - Apple reached a new record market cap above $5 trillion, driven by its capital-light model.