The Federal Reserve’s Federal Open Market Committee (FOMC) votes to keep the federal funds rate unchanged in the 3.5% to 3.75% target range. All accounts report the decision is not unanimous: three regional Federal Reserve Bank presidents dissent and prefer a quarter-percentage-point increase. CBS and Bloomberg both note the decision takes place amid ongoing concerns about inflation and the impact of factors including oil prices, but the majority chooses to maintain current policy.
Bloomberg adds context, saying this is the fifth consecutive meeting in which FOMC participants leave rates unchanged. Bloomberg also reports remarks from Fed Chair Kevin Warsh following the decision. Warsh reiterates the Fed’s goal of bringing inflation down, while stopping short of committing to an immediate rate increase. He indicates that raising rates could be part of the solution, but not as the only measure.
Overall, the sources agree the Fed holds the line on rates for now, with a minority arguing for a near-term tightening.
