#FOMCMeeting Federal Reserve holds its benchmark rate steady at today's FOMC meeting:
The Federal Reserve said Wednesday it's keeping its benchmark interest rate unchanged, citing elevated uncertainty over the nation's economic outlook.
The decision to hold rates steady marks a continuation of the Fed's "wait-and-see" strategy this year, as it monitors the impact of the Trump administration's tariffs on consumer prices. But Wednesday's policy statement also underscored that the growth remains steady despite concerns about slowing economic activity.
“Although swings in net exports continue to affect the data, recent indicators suggest that growth of economic activity moderated in the first half of the year," the Federal Open Market Committee, the 12-person central bank's rate-setting panel, said in its statement. "The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated."
Two voting FOMC members, Fed Governors Michelle Bowman and Christopher Waller, voted in favor of lowering the central bank's short-term rate — a rare show of dissent at the Fed, where monetary policy is generally set by consensus. It is the first time since 1993 that two member of the Fed's Board of Governors have voted against the chair, according to Capital Economics.
Federal Reserve Chair Jerome Powell has faced pressure in recent months from President Trump to lower rates, with the president arguing that inflation remains relatively tame.
In a press conference on Wednesday, Powell said most FOMC members voted in favor of maintaining the current rate because inflation remains above the Fed's 2% annual target, while also describing the economy as remaining in good shape.
“The economy is not performing as though restrictive policy were holding it back inappropriately," he said.
Powell added, "The economy is in good shape, but it's an unusual situation in that you have risks to both sides of the mandate," referring to the Fed's dual goal of keeping both prices and unemployment low.$BTC
