The Federal Reserve has kept its key interest rate unchanged, maintaining the target range between 3.5% and 3.75%, the central bank announced on Wednesday.
The decision was not reached unanimously this time. While the Fed Chair, Jerome Powell, and the majority of members of the Open Market Committee supported the action, Stephen Miran advocated, as in previous meetings, for a quicker reduction in rates. Although Beth Hammack, Neel Kashkari, and Lorie Logan favored keeping the current target corridor, they declined to include any commitment to easing policy in the official statement.
The Fed noted that the committee remains prepared to adjust its monetary policy stance should any unforeseen risks emerge that might impede the achievement of its goals. The central bank reaffirmed its strong commitment to promoting maximum employment and bringing inflation back down to its 2% target.
According to the Federal Reserve, current indicators suggest that economic activity is expanding at a stable rate. They pointed out that average job growth has been sluggish, and the unemployment rate has remained largely unchanged in recent months. Inflation remains elevated, partly attributed to the recent surge in global energy prices. Furthermore, developments in the Middle East continue to contribute to high uncertainty regarding overall economic prospects.