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 says. “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.”
According to the statement, the rate remains unchanged at 3.5%-3.75%. The Committee noted that economic activity has been “expanding at a solid pace” while job gains “have remained low” and the unemployment rate “has been little changed in recent months.” Despite the unchanged rates, the Committee ensured that it is “strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.”
Voting against the action was Stephen I. Miran, who “preferred to lower the target range for the federal funds rate by 1/4 percentage point at this meeting,” the Committee said. The total vote was 11-1.
The Federal Reserve last cut interest rates in December in a 9-3 vote. “The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment rose in recent months,” the statement read, going on to reiterate that the Committee is “strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.”
The Federal Reserve also cut interest rates in October, dropping them 3.75%-4%, as well as lowering them in September by half a percentage point.
