Interest Rates Unchanged in Split Vote as Powell Vows to Complete Term
The Federal Reserve board of governors voted 8-4 in favor of holding its target lending rate at 3.5% to 3.75%, where it has stood since December, in what was likely its last meeting led by chairman Jerome Powell.
Powell has endured persistent pressure from President Donald Trump to lower interest rates to stimulate the economy. The Fed is tasked with setting monetary policy that supports its dual mandate of controlling inflation and promoting a healthy job market.
“Job gains have remained low, on average, and the unemployment rate has been little changed in recent months,” states a release detailing the board’s decision. “Inflation is elevated, in part reflecting the recent increase in global energy prices. … Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook. The Committee is attentive to the risks to both sides of its dual mandate.”
In a press conference following the announcement, Powell pledged to remain on the board as a governor, completing a term that ends in 2028, once his chairmanship concludes on May 15. Trump has nominated financier, attorney and former Fed governor Kevin Warsh to serve as the agency’s next chair.
