Fed holds rates steady at 3.5–3.75% at first meeting of the year

The Federal Reserve held rates steady on Wednesday at the central bank’s first meeting of the year, keeping its benchmark interest rate in a range of 3.5 percent to 3.75 percent, the Fed said. The Fed board’s policy statement said, "Economic activity has been expanding at a solid pace," an upgrade from the "moderate" pace in December, and added that "Job gains have remained low, and the unemployment rate has shown some signs of stabilization.

Inflation remains somewhat elevated." Two governors dissented and voted for a quarter-point cut. Stephen I. Miran, whom President Trump appointed late last year, once again issued a dissent and voted in favor of a quarter-point cut. He was joined by Fed governor Christopher J. Waller, who also voted for a quarter-point cut; Mr.

Waller was appointed by Mr. Trump during the president’s first term in office and is among the contenders to be the next Fed chair. Chair Jerome H. Powell said at a post-meeting news conference that "the economy has once again surprised us with its strength, not for the first time." He described attending the Supreme Court hearing on whether Lisa D.

Cook could be fired as "the most important legal case in the Fed’s 113-year history" and said "it might be hard to explain why I didn’t attend." His presence at the hearing was criticized by Treasury Secretary Scott Bessent. Mr.

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