Fed Holds Rates Steady, Three Officials Dissent Favoring a Hike
Three regional presidents dissented as officials said inflation remains elevated and energy-price shocks tied to the Middle East cloud the outlook.
- The Federal Open Market Committee voted 9-3 on Wednesday to maintain the federal funds rate between 3.5% and 3.75%, marking the fifth consecutive hold despite internal pressure for higher rates.
- Persistent inflation has remained above the Fed's 2% target for more than five years, while conflict in the Middle East adds economic uncertainty, though officials noted that activity expands at a solid pace.
- Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan dissented, preferring a quarter-point increase as they have been most explicit about the need for higher rates.
- Markets largely expected the hold, though 76% of traders now foresee a rate hike in September; New Fed Chair Kevin Warsh declared he has "no tolerance" for elevated inflation.
- Bank of America analysts expect three quarter-point hikes this year, potentially reaching 4.25% to 4.5%, as policymakers await Thursday's Commerce Department data on economic growth and inflation measures.
195 Articles
195 Articles
US Fed holds rates again as Trump pushes for lower borrowing costs
The US Federal Reserve kept interest rates unchanged for a fifth straight meeting despite President Donald Trump's call for lower borrowing costs. The 9-3 split and persistent inflation underscored how divided officials remain on the path ahead.
Fed holds rates for fifth straight meeting as three officials push for a hike
The US Federal Reserve left interest rates unchanged on Wednesday in a range of 3.5% to 3.75%, the fifth consecutive meeting without a move, in a decision that exposed an unusual internal split and left the door open to tightening in September.
At the conclusion of its traditional two-day meeting, the Federal Open Market Committee (FOMC) decided to maintain interest rates in the 3.50% to 3.75% range for the fifth consecutive time. This decision was explained by the "impressive strength" of the U.S. economy, explained the institution's chairman, Kevin Warsh, at a press conference. And it underscores that the Fed "remains patient," noted Andrew Davis, director of investment strategy at…
Taken between the inflation caused by the Middle East war and Donald Trump's willingness to lower rates, the Fed maintains its rates unchanged.
Donald Trump repeatedly criticized the last Fed boss Jerome Powell because he did not lower the key interest rate. However, the new boss Kevin Warsh can only do without an increase – which a part of the Central Bank Council wanted.
Coverage Details
Bias Distribution
- 54% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
