The US Federal Reserve has held interest rates steady, with surging inflation fuelled by President Donald Trump's war on Iran seeing three of the committee's 12 policymakers calling for a quarter-percentage-point rate hike.
The Fed's open market committee (FOMC) held rates at 3.50-3.75 percent for the fifth straight meeting, with its chairman Kevin Warsh denying that he was reticent to take action against the inflation that has battered US households for more than five years.
"We are on the job. We will deliver. We are focused like a laser, making sure we can do it," he said, adding that there was "no magic wand" with which the Fed could lower inflation quickly.
Warsh insisted the economy was showing "impressive resilience, with recent shocks."
Since taking office, the new Fed chair — who was nominated by Trump, who has demanded lower interest rates — has repeatedly said he wanted a "good family fight" at rate decision meetings.
On Wednesday, he said he got one, with three regional Fed presidents dissenting from the majority and recommending the central bank start raising rates now.
"Most of our discussion was on the big questions that matter to the conduct of monetary policy. We didn't sort of hide from them. We weren't scared of them," Warsh told reporters.
"There was a lot more interaction between and among my colleagues. It was a real family fight."
It is rare for that many FOMC members to differ from the majority's vote.
Old guard worried
They are not the only ones flagging the potential need to address inflation using rate hikes. In addition to the three dissenters, Fed Governors Christopher Waller and Lisa Cook have also signalled their concern in recent weeks.
"We may have a new chairman, but the old guard is now worried about where the economy has moved since the beginning of the year," said Diane Swonk, chief economist at KPMG, ahead of the decision.
Most investors expected the Fed to hold rates steady, according to CME's FedWatch monitoring tool, but bets on a rate-hike rose significantly in the days leading up to the meeting.
Consumer inflation eased to 3.5 percent year-on-year last month, but is expected to rise again on the back of seesawing oil prices from Trump's war on Iran, which has seen renewed fighting in recent weeks.
The Fed has a dual mandate to keep inflation to its long-term, two-percent target while ensuring maximum employment in the world's largest economy.
Its main tool to achieve this is setting the key interest rate. Raising it tends to constrain economic activity, while lowering it can spur employment but also lead to higher inflation.
Wednesday's decision leaves rates unchanged, meaning nine policymakers see the current rate as having the appropriate effect on economic activity.
