Investing.com — The Federal Reserve on Wednesday held interest rates steady as widely expected, in what is anticipated to be the final policy move by the central bank under the leadership of chair Jerome Powell.
The Federal Open Market Committee (FOMC) maintained the federal funds rate at 3.50%-3.75% for a third straight meeting.
“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,” the FOMC said in a statement.
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook. The Committee is attentive to the risks to both sides of its dual mandate,” the FOMC added.
The Fed’s decision comes at a time when surging oil prices due to the Middle East conflict have made their impact felt on headline inflation in the U.S. More possible inflationary pain ahead, along with a labor market that remains in a “low hire, low fire” environment, has made the central bank’s job complicated.
The focus now turns to Fed Chair Jerome Powell’s upcoming press conference at 14:30 ET (18:30 GMT). Perhaps even more so than the central bank’s decision or his commentary, watchers of monetary policy will be interested in knowing whether he will decide to stay on as a governor after his term as chair ends in May.
On Wednesday, the U.S. Senate Banking Committee voted to advance Powell’s chosen successor, Kevin Warsh, to a full Senate vote, setting up President Donald Trump’s pick for a final confirmation.
This is a developing story, please check back for updates
Source:
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