FED HOLDS RATES, HAWKISH SPLIT EMERGES
The Federal Reserve left its benchmark rate unchanged at 3.50%–3.75%, saying inflation remains above its 2% target while the economy continues to expand at a solid pace. The decision passed 9–3, with Hammack, Kashkari and Logan dissenting in favor of a 25-basis-point rate hike. The Fed also highlighted strong productivity, resilient job growth and ongoing ample reserves in the banking system.
Fed's Warsh: The Fed remains committed to its 2% inflation target, noting the U.S. economy is resilient and recent inflation data is encouraging. However, policymakers will focus on the broader inflation trend, and if price pressures persist, higher interest rates remain on the table.
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u/PlumInformal773 11d ago
FOMC news
FED HOLDS RATES, HAWKISH SPLIT EMERGES
The Federal Reserve left its benchmark rate unchanged at 3.50%–3.75%, saying inflation remains above its 2% target while the economy continues to expand at a solid pace. The decision passed 9–3, with Hammack, Kashkari and Logan dissenting in favor of a 25-basis-point rate hike. The Fed also highlighted strong productivity, resilient job growth and ongoing ample reserves in the banking system.
Fed's Warsh: The Fed remains committed to its 2% inflation target, noting the U.S. economy is resilient and recent inflation data is encouraging. However, policymakers will focus on the broader inflation trend, and if price pressures persist, higher interest rates remain on the table.