For its fifth consecutive meeting and second under recently appointed chairman Kevin Warsh, the Federal Reserve’s 12-member Federal Open Market Committee left its target lending rate unchanged at 3.5% to 3.75%.

In a release announcing the decision, the FOMC acknowledges “elevated” inflation that could ultimately force it to raise the target rate despite mounting pressure from the Trump administration to lower it. The latest U.S. Bureau of Labor Statistics report shows the annual rate of inflation fell from 4.2% in May to 3.5% in June after climbing for five consecutive months.

“Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East,” the release states, referencing conflicts in Iran and Lebanon. “Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little.”

Unlike his first meeting as chair last month, Warsh was unable to marshal a unanimous decision: Fed governors Beth Hammack, Neel Kashkari and Lorie Logan voted to reduce the target rate to a 3.25%-to-3.5% range.

Read more at Federal Reserve