The Federal Reserve had opted to maintain the target range for the federal funds rate at 3.5% to 3.75%.
The central bank’s policy making Federal Open Market Committee (FOMC) cited a low level of job gains, elevated inflation and a “high level of uncertainty” due to “developments in the Middle East.”
Fed Gov. Stephen Miran was the only member of the FOMC to vote against the action, arguing the federal funds rate should be cut by a one-quarter percentage point. Three members – Beth M. Hammack, Neel Kashkari, and Lorie K. Logan – supported maintaining rate range but did not support what the FOMC described as an “inclusion of an easing bias in the statement at this time.”
Today’s FOMC meeting is the final gathering chaired by Jerome Powell, whose term as Fed chairman expires on May 15. The Senate Banking Committee approved President Trump’s nomination of Kevin Warsh, a former Fed governor, to succeed Powell, and the full Senate is expected to vote on the Warsh confirmation in early May. The next FOMC meeting occurs on June 16-17.
In a press conference after the FOMC announcement, Powell said he planned to remain on the Fed board as a governor until the resolution of legal challenges President Trump raised against the central bank have concluded. His term as a Fed governor runs through January 2028. While the Department of Justice suspended its criminal probe into Powell regarding cost overruns at the Fed’s headquarters, US Attorney Jeanine Pirro hinted she had the option to revive the probe.
“My concern is really about the series of legal attacks on the Fed, which threatened our ability to conduct monetary policy without considering political factors,” he said. “I’m worried that these attacks are battering the institution.”
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