The Federal Reserve held interest rates steady during Kevin Warsh’s first meeting as Federal Reserve Chair.
In a 12-0 vote, the Committee moved to maintain the target range for the federal funds rate at 3.5%-3.75%.
“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 Federal Open Market Committee said in a statement. “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.”
Upon being sworn in as the new head of the central bank, Warsh said, “I will lead a reform-oriented Federal Reserve, learning from past successes and mistakes both, escaping static frameworks and models, upholding clear standards of integrity and performance,” and added that the effort will signify a “return to an institution that I do, in fact, cherish.”
President Trump said, “Kevin understands that when the economy is booming, it’s a good thing. We have some debt we would like to take care of. The way you do that is through growth. You want to stop inflation, but you don’t want to stop greatness.”
“They’ll be listening to Kevin all the way. Even if they’re of a somewhat different persuasion than Kevin,” he said.
The Federal Reserve also left interest rates unchanged in its last meeting with former Chair Jerome Powell.
