Fed Holds Interest Rates Again as Energy Prices Spike
In his last monetary policy meeting as chairman of the Federal Reserve’s 12-member board of governors, Jerome Powell presided over an 11-1 decision to hold the target lending rate at 3.5% to 3.75%.
“Uncertainty about the economic outlook remains elevated. The implications of developments in the Middle East for the U.S. economy are uncertain,” reads a release announcing the decision, which comes amid surging energy costs attributed chiefly to the ongoing conflict in Iran and neighboring nations.
President Donald Trump has persistently pushed for lower interest rates to stimulate the economy. But the Fed is less likely to act as long as inflation remains above its target rate of 2%; the rate was 2.4% at the end of February, according to the U.S. Bureau of Labor Statistics.
Trump appointee Stephen Miran was one of two governors who voted for a quarter-point cut in January; Miran was the lone voice of dissent in today’s meeting.
