Two Governors Dissent as Fed Ends Series of Interest Rate Cuts
The Federal Reserve’s board of governors elected to hold its target lending rate at 3.5% to 3.75% in a 10-2 vote. The decision marks the end of a series of quarter-point cuts made at the end of the Fed’s last three meetings, starting in September 2024.
Citing “some tension between the mandates” to which the Fed hews — restraining inflation and promoting a healthy job market — Chairman Jerome Powell said no move was the best move.
“Inflation has eased significantly from its highs in mid-2022 but remains somewhat elevated relative to our 2% longer run goal,” Powell told reporters in a post-meeting press conference.
At the end of December, the U.S. inflation rate stood at 2.7%, unchanged from the prior month, and the unemployment rate was 4.4%, down from 4.5%.
The dissenting governors were Stephen Miran and Christopher Waller, who voted for a fourth quarter-point cut.
