The Federal Reserve is keeping interest rates the same with a unanimous vote on Wednesday, and it’s the first interest rate decision with Federal Reserve Chair Kevin Warsh at the helm.
“The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, in support of the Federal Reserve's dual mandate. The Committee reaffirmed its policy of maintaining ample reserves in the banking system,” the Federal Open Market Committee said in a statement.
“Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little,” the statement continued.
“Inflation remains elevated relative to the Committee's 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability,” the committee added.
President Donald Trump nominated Warsh to replace Jerome Powell as chair when his term expired, but Powell remains of the Board of Governors.
Trump has previously called for a significant cut in interest rates.
“Jerome ‘Too Late’ Powell again refused to cut interest rates, even though he has absolutely no reason to keep them so high,” the president posted to Truth Social in January. “He is hurting our Country, and its National Security. We should have a substantially lower rate now that even this moron admits inflation is no longer a problem or threat.”