Fed leaves interest rates unchanged at 3.5%–3.75%

The Federal Reserve held its benchmark interest rate steady on Wednesday, keeping the target range at 3.5 percent to 3.75 percent at the central bank’s first meeting of the year, the Fed said. The Fed’s policy statement said economic activity has been expanding at a "solid pace," that job gains "have remained low," the unemployment rate has shown "some signs of stabilization," and that "inflation remains somewhat elevated." Policymakers left rates unchanged after cutting by a quarter-point in each of the previous three meetings.

Two governors—Stephen I. Miran, whom President Trump appointed late last year, and Christopher J. Waller—dissented and voted in favor of a quarter-point cut; Mr. Waller was appointed by Mr. Trump during his first term and is among contenders to be the next Fed chair. Chair Jerome H.

Powell said the economy "has once again surprised us with its strength," and he described his decision to attend a Supreme Court hearing on whether a Fed governor could be fired as "the most important legal case in the Fed’s 113-year history." He largely declined to engage on political attacks or his own future at the Fed.

Powell said officials were not taking any moves off the table: they would consider cutting if the labor market weakened considerably, while a pickup in inflation without labor-market deterioration could lead to rate increases, though he downplayed the chance that the next move would be a hike.

federal reserve, interest rates, 3.5 percent to 3.75 percent, benchmark interest rate, jerome h. powell, stephen i. miran, christopher j. waller, lisa d. cook, president trump, quarter-point cut, three quarter-point cuts, unemployment rate, labor market, elevated inflation, supreme court hearing, dissenting votes, next rate move, rate hike chance, rate cut consideration, consumer prices, tariffs pushed up prices, fed policy statement, neutral rate, fed chair nominee, scott bessent