US Fed Keeps Rates Unchanged, Two Voted Against Decision
The United States (U.S.) Federal Reserve maintained a decision to keep fed fund rates tight at 4.25 and 4.50% at its recently concluded FOMC meeting on Wednesday.
In an official statement, the US Fed said 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 unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated,” the US central bank said in a statement.
The Committee said it seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run, noting that uncertainty about the economic outlook remains elevated.
In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent, its official statement released reads.
“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.
“The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.
“In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. “The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals.
“The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments,” the Fed said.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Susan M. Collins; Lisa D. Cook; Austan D. Goolsbee; Philip N. Jefferson; Alberto G. Musalem; and Jeffrey R. Schmid.
Voting against this action were Michelle W. Bowman and Christopher J. Waller, who preferred to lower the target range for the federal funds rate by 1/4 percentage point at this meeting. Absent and not voting was Adriana D. Kugler. #US Fed Keeps Rates Unchanged, Two Voted Against Decision US 10-Year Treasury Bond Yield Falls to 4.36%
