The U.S. Federal Reserve concluded its two-day monetary policy meeting on the 29th, announcing that it will keep the federal funds rate target range unchanged at 3.5% to 3.75%.
This decision is in line with market expectations and marks the third consecutive time this year that the interest rate has been left unchanged.
In its statement, the Fed said that recent indicators show economic activity is expanding steadily, new job creation remains generally low, and the unemployment rate has changed little over the past few months. Inflation remains elevated, due in part to the recent rise in global energy prices.
The Fed noted that changes in the Middle East situation bring significant uncertainty to the economic outlook. The Fed reiterated its commitment to achieving maximum employment and a 2% inflation target. When considering the extent and timing of further adjustments to the target range for rates, the Fed will carefully assess new data, the evolving economic outlook, and overall risk conditions.
The statement showed that out of the 12 members of the Federal Open Market Committee, 8 supported the decision that day. One member who voted against favored a 25-basis-point rate cut, while another 3 supported keeping the rate unchanged but did not support signaling an easing monetary policy stance in the statement.
After Stepping Down as Chair, Powell Will Remain as Fed Governor
On the other hand, Federal Reserve Chairman Jerome Powell said at a press conference on the afternoon of the 29th that after his term as Fed chairman ends on May 15, he will continue to serve as a Fed governor.