The Federal Reserve on Wednesday left interest rates unchanged at 3.5% to 3.75%.
Wednesday’s Federal Open Market Committee (FOMC) meeting may be Jerome Powell’s last as the Senate prepares to confirm Kevin Warsh as the new Fed Chairman.
In an unusual development, four FOMC members dissented.
As expected, Trump-appointed governor Stephan Miran dissented.
“The other three “no” votes came from regional presidents Beth Hammack of Cleveland, Neel Kashkari of Minneapolis and Lorie Logan of Dallas. They said they agreed with the hold but “did not support the inclusion of an easing bias in the statement at this time,”” CNBC reported.
According to CNBC, at issue for the trio was this sentence: “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.”
CNBC reported:
An unusually divided Federal Reserve on Wednesday held its key interest rate steady as policymakers grappled with the policy impact of persistent inflation and awaited a looming leadership transition at the central bank.
In what may have been Chair Jerome Powell’s final meeting at the helm, the rate-setting Federal Open Market Committee voted to hold the benchmark funds rate in a range between 3.5%-3.75%. Markets had been pricing in a 100% chance of no change.
However, the meeting saw a dramatic turn amid a groundswell of officials who opposed messaging that further rate cuts could be ahead.
Amid expectations for a routine vote to hold the benchmark funds rate steady, the Federal Open Market Committee instead was split along 8-4 lines, with officials expressing different reasons for their vote.
Fed Chair Jerome Powell held a press conference on Wednesday afternoon.
Powell said he plans to remain on the board as chairman after his term ends next month “for an undetermined period of time.”
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