The Federal Reserve has opted to hold rates at their current level.
The central bank’s policy making Federal Open Market Committee stated it will “maintain the target range for the federal funds rate at 3.5% to 3.75%.” The vote for holding rates was near-unanimous, with only Fed Gov. Stephen Miran dissenting with a call for a quarter-percentage point rate cut.
In announcing its decision, the Fed observed “economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has been little changed in recent months. Inflation remains somewhat elevated.”
However, it also noted, “Uncertainty about the economic outlook remains elevated. The implications of developments in the Middle East for the US economy are uncertain.”
Today’s meeting is the second-to-last for Jerome Powell as Fed chairman, with his final meeting coming April 28-29. Ahead of the Fed announcement, President Trump took to Truth Social to complain, “When is ‘Too Late’ Powell lowering INTEREST RATES?”
