Federal Reserve Decision Full Text: Maintains Steady for the Third Consecutive Time but Divisions Widen

Source: Zheng Yao

On April 30th, Beijing time, the Federal Reserve kept the benchmark interest rate unchanged at 3.50%-3.75%, marking the third consecutive meeting without any change, in line with market expectations. The FOMC approved the decision with an 8-4 vote; Milan voted against, supporting a 0.25 percentage point rate cut; Harker, Kashkari, and Logan voted against, opposing the inclusion of future easing bias in the statement.

Full text of the interest rate decision

Recent indicators suggest that economic activity is expanding at a steady pace. Overall employment growth remains somewhat weak, with the unemployment rate changing little over the past few months. Inflation remains elevated, partly reflecting recent increases in global energy prices.

The Committee is committed to achieving maximum employment in the long run and maintaining inflation at 2%. Developments in the Middle East are increasing uncertainty about the economic outlook. The Committee is closely monitoring the risks facing its dual mandate.

To support these objectives, the Committee has decided to keep the federal funds rate target range at 3.5%-3.75%. When considering further adjustments to this target range, the Committee will carefully assess the latest data, outlook changes, and risk balance. The Committee remains committed to supporting maximum employment and returning inflation to 2%.

In assessing the appropriate monetary policy stance, the Committee will continue to monitor how new information affects the economic outlook. If risks emerge that could hinder the achievement of the Committee’s goals, it is prepared to adjust the monetary policy stance as necessary. The Committee’s assessments will consider multiple factors, including labor market conditions, inflation pressures and expectations, and developments in financial and international markets.

Members voting in favor of this monetary policy action include: Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lisa D. Cook; Philip N. Jefferson; Anna Paulson; Christopher J. Waller.

Members opposing this action include: Stephen I. Miran, who favors a 0.25 percentage point reduction in the federal funds rate target range at this meeting; and Beth M. Hammack, Neel Kashkari, and Lorie K. Logan, who support maintaining the federal funds rate target range but oppose including an easing bias in the current statement.