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Fed keeps key rate unchanged even as four officials dissent
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Fed keeps key rate unchanged even as four officials dissent

The Independent·Christopher Rugaber·about 1 month ago
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The Federal Reserve left its benchmark interest rate unchanged for a third straight meeting Wednesday but signaled it could still cut rates in the coming months, moves that attracted the most dissents since October 1992. The Fed kept its short-term rate at 3.6% and retained language in its statement suggesting the next move would be a rate reduction. Three officials dissented in favor of removing the reference to a future cut, while a fourth, Stephen Miran, dissented in favor of an immediate rate cut. The dissents underscore the level of division on the Fed's 12-member rate-setting committee ahead of the departure of Chair Jerome Powell , whose term ends May 15. The Senate Banking Committee approved his successor, Trump appointee Kevin Warsh , earlier Wednesday on a party-line vote. Warsh has argued in favor of rate cuts, as Trump has demanded. “Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook,” the Fed said in a statement after its two-day meeting.…

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