The US Federal Reserve on Wednesday announced that it will keep interest rates unchanged.
The central bank will keep the target range for the federal funds rate at range between 3.5% and 3.75%. The Fed had lowered rates three times last year.
“Available indicators suggest that economic activity has been expanding at a solid pace,” the bank said in a statement. “Job gains have remained low, and the unemployment rate has shown sign of stabilization. Inflation remains somewhat elevated.”
Ten of the 12 members of the Federal Open Market Committee voted for the policy, with two dissenting. Fed Governors Stephen Miran and Christopher Waller, both appointed by US President Donald Trump, were instead in favor of a quarter-point reduction in the rates.
Federal Reserve Chair Jerome Powell was one of the ten members who voted in favor of keeping the rates as they are. Trump in recent years has frequently chided Powell for not lowering rates, calling him “too late.”
As a means to boost the economy, the Federal Reserve will lower interest rates to stimulate borrowing. During times of high inflation, as seen in recent years, the Fed will often raise rates to keep the economy from overheating.
This is a breaking news story and will be updated…
Edited by: Sean Sinico
