The Federal Open Market Committee today voted to maintain the target range of the federal funds rate at 3.5%-3.75%. Fed Governor Stephen Miran voted against the action, preferring a cut of 25 basis points, while three governors supported holding the target range steady but objected to language suggesting the Fed may lower rates in the near future.
In a statement, the FOMC said recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, on average, and the unemployment rate has been little changed in recent months. 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,” it added.
