Fed Keeps Rates Unchanged as Expected, Waller and Milan Cast Dissenting Votes

Odaily News The Federal Reserve kept interest rates unchanged today, citing that inflation remains elevated and economic growth remains robust. The policy statement offered little clue as to when the next rate cut might occur. The Fed decided to maintain the benchmark interest rate in the range of 3.50%–3.75% by a vote of 10 in favor and 2 against. The statement noted, "Economic activity has continued to expand at a solid pace." Governors Waller and Milan cast dissenting votes, advocating for a 25 basis point rate cut. The statement did not signal any timing for the next rate cut, stating only that the "extent and timing" of "further adjustments" would depend on incoming data and the economic outlook. Meanwhile, the Fed stated that inflation "remains somewhat elevated," while the labor market "has shown some signs of stabilization." Although the Fed noted that "job gains have remained low," it removed language from its previous statement about increased downside risks to employment, indicating that policymakers' overall concern about a rapid deterioration in the labor market has eased somewhat. (Jin10)