The Federal Reserve concluded its two-day monetary policy meeting on the 30th, announcing that it will keep the federal funds rate target range unchanged at 4.25% to 4.50%.
This is the fifth consecutive policy meeting at which the Fed has decided to keep rates unchanged, in line with market expectations.
Among the 12 voting members of the Federal Open Market Committee, 9 voted to keep rates unchanged. Vice Chair for Supervision Bowman and Fed Governor Waller both voted in favor of a 25 basis point rate cut, while Governor Kugler was absent from the vote.
According to U.S. media reports, this is the first time in over 30 years that two Fed governors have simultaneously expressed dissenting opinions in a vote on interest rate decisions.
The FOMC said in a statement that despite ongoing fluctuations in net exports affecting the data, recent indicators show that economic activity slowed in the first half of the year, while the unemployment rate remains low, labor market conditions remain robust, and inflation is still at a relatively high level.
The statement pointed out that uncertainty about the economic outlook remains high, and the committee is committed to achieving maximum employment and bringing inflation back down to its 2% target.
Meanwhile, in a press conference, Federal Reserve Chair Powell said that it seems appropriate to implement a moderately restrictive monetary policy.
He said the Fed has not yet made a decision about monetary policy for September, which will depend on employment and inflation data released before the next policy meeting.
Powell pointed out that, although the impact of higher tariffs on the prices of some goods has started to gradually emerge, its overall impact on economic activity and inflation remains to be seen.