The Federal Reserve opted to hold the federal funds rate in the range of 3.5% to 3.75%.
The central bank’s Federal Open Market Committee voted 9-3 on this decision. The trio of dissenters were regional Fed presidents – Cleveland’s Beth M. Hammack, Minneapolis’ Neel Kashkari, and Dallas’ Lorie K. Logan – sought to raise the target range for the federal funds rate by a one-quarter percentage point.
“Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East,” said the Fed in a statement. “Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little. Inflation remains elevated relative to the Committee’s 2%, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability.”
C’mon say the tariffs and war are ruining economy. My car runs now on expensive Trump gas and my shopping cart is less heavy. Housing sales are way down and deep discounts are necessary to sell new homes. Inventive financing to keep themselves from going bankrupt.
You can only eat so much AI and promises.