Fed holds rates, three dissents signal hawkish tilt

The US Federal Reserve kept interest rates steady at 3.5%-3.75% on July 29, as expected, but three policymakers dissented, voting for a 25-basis-point hike—the first such split in nearly a decade. Markets interpreted the move as a hawkish hold, with Chairman Kevin Warsh emphasizing inflation risks. For India, the status quo supports foreign inflows, stabilizes the rupee near 96, and preserves RBI's easing options, though September rate hike odds remain high due to persistent inflation from geopolitical tensions.