Fed holds rates steady as Powell’s chairmanship winds down: April FOMC
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Powell is holding his likely last press conference before stepping down as Fed chairman next month.
This story about the Federal Reserve’s April interest rate decision is developing and will be updated with further details.
The Federal Reserve on Wednesday announced it will leave interest rates unchanged amid concerns about inflation rising further amid the war in Iran.
Fed policymakers voted to leave the benchmark federal funds rate unchanged at its current range of 3.5% to 3.75%. The move follows the central bank’s decision to hold rates steady in January and March after three successive 25-basis-point rate cuts in September, October and December to close out last year.
The Federal Open Market Committee (FOMC), the central bank’s panel responsible for monetary policy moves, voted 11-1 to leave interest rates unchanged. Fed Governor Stephen Miran dissented in favor of a 25-basis-point cut.
Three other FOMC members – Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie Logan – dissented as they opposed the inclusion of language showing a bias toward easing interest rates. The four total dissents were the highest total for a FOMC meeting since 1992.
The FOMC meeting is expected to be the last under the leadership of Federal Reserve Chairman Jerome Powell, as his term as Fed chairman is due to expire on May 15. Powell may serve out the remainder of his term as a member of the Fed’s Board of Governors.
Federal Reserve Chair Jerome Powell may remain a member of the Fed’s Board of Governors after his chairmanship ends. (Li Yuanqing/Xinhua via Getty Images)
The FOMC’s statement noted that the war in the Middle East is “contributing to a high level of uncertainty about the economic outlook,” and that the economy is expanding with low levels of job gains and inflation elevated due to the recent rise in global energy prices.
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