The Federal Reserve will not be cutting rates this month.
The central bank’s policy making Federal Open Market Committee announced in a statement that it would “maintain the target range for the federal funds rate at 4.25% to 4.5%.” In making its announcement, the Fed warned that “uncertainty around the economic outlook has increased” – although it did not specifically identify the issues impacting this outlook. It also added that it was “attentive to the risks to both sides of its dual mandate.”
“In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” said the central bank’s statement. “The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. Beginning in April, the Committee will slow the pace of decline of its securities holdings by reducing the monthly redemption cap on Treasury securities from $25 billion to $5 billion. The Committee will maintain the monthly redemption cap on agency debt and agency mortgage-backed securities at $35 billion.”
The sole dissenting vote on this policy action was Fed Governor Christopher J. Waller, who was identified as supporting “no change for the federal funds target range but preferred to continue the current pace of decline in securities holdings.”
