The Federal Reserve left interest rates unchanged at 3.5% to 3.75% during Kevin Warsh’s second FOMC meeting, but the decision revealed a growing divide among policymakers over how to respond to persistent inflation.

The Federal Open Market Committee voted 9-3 to maintain its current policy stance, with three officials, including Beth Hammack, Neel Kashkari, and Lorie Logan, favoring a 25-basis-point rate increase.

The majority of policymakers pointed to a resilient US economy, citing solid growth, strong productivity gains, and continued capital investment despite elevated uncertainty linked partly to the conflict in the Middle East.

The Fed also described the labor market as stable, noting that job gains have kept pace with workforce growth and unemployment has changed little.

However, officials warned that inflation remains above their 2% goal, with supply shocks contributing to higher prices in areas such as energy.

Bitcoin appeared to have already priced in the Fed’s decision before it was announced. The flagship crypto asset pushed to $64,000 in the minutes leading up to the statement and was trading near $64,500 at press time.

President Donald Trump selected Warsh to lead the central bank in hopes of a more accommodative approach to interest rates, but stubborn inflation has instead forced the new chair to deal with a much more challenging economic backdrop.

Warsh has emphasized that the central bank should focus on current economic conditions rather than offering detailed guidance about future policy.

As part of that shift, Warsh unveiled five task forces to examine the Fed’s communications strategy, balance sheet, economic data, productivity and labor markets, and inflation framework. The panels will include outside experts and are expected to recommend reforms before the end of the year.

The overhaul comes as inflation has risen more sharply than officials projected earlier this year, prompting markets to reassess expectations for the Fed’s policy path.