The Federal Reserve left interest rates unchanged in its last meeting with Chair Jerome Powell. His term expires on May 15.
“Recent indicators suggest that economic activity has been expanding at a solid pace,” the Fed said in a statement. “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. The Committee is attentive to the risks to both sides of its dual mandate,” the statement adds.
Fed Governor Stephen Miran dissented from the decision and instead supported a quarter-point interest rate cut. Three others, Cleveland Fed President Beth Hammack, Dallas Fed President Lorie Logan, and Minneapolis Fed President Neel Kashkari, “supported maintaining the target range for the federal funds rate but did not support inclusion of an easing bias in the statement at this time,” the Federal Reserve noted.
In March, the Federal Reserve left interest rates unchanged as policymakers continue to eye the economic outlook amid ongoing Middle East tensions. “The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated,” a statement from the Board of Governors said. “The implications of developments in the Middle East for the U.S. economy are uncertain. The Committee is attentive to the risks to both sides of its dual mandate.”
