WASHINGTON— In a widely anticipated move, the Federal Reserve Wednesday held its benchmark federal funds rate steady at a target range of 3.5% to 3.75%, citing continued solid economic activity, low job gains, and inflation that remains somewhat elevated.
The Federal Open Market Committee said recent indicators point to ongoing economic expansion, with the unemployment rate showing signs of stabilization. However, policymakers noted that uncertainty around the economic outlook remains high, underscoring risks to both employment and inflation—its dual mandate.
The Fed reiterated its commitment to returning inflation to its long-run 2% goal while supporting maximum employment. Officials said future rate decisions will depend on incoming economic data, evolving forecasts, and the balance of risks, and emphasized they remain prepared to adjust monetary policy if conditions threaten progress toward their objectives.
The decision drew two dissenting votes. Governors Stephen Miran and Christopher Waller favored cutting rates by 25 basis points, while Chair Jerome Powell and eight other policymakers voted to maintain the current range, signaling ongoing internal debate over the timing and direction of the Fed’s next move.