Resisting pressure from President Trump to slash interest rates down to almost zero percent, the Federal Reserve’s Open Markets Committee this afternoon decided to hold interest rates steady.
In a statement, the FOMC said, “Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated.”
The FOMC said that it will be maintaining the target range for the federal funds rate at 4-1/4% to 41/2% because it feels that is the best way to achieve its target rate for inflation of 2%.
The committee said it “seeks to achieve maximum employment and inflation at the rate of 2% over the longer run. Uncertainty about the economic outlook has diminished but remains elevated.”
The committee said that it will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The committee said that it is strongly committed to supporting maximum employment and returning inflation to its 2% objective.
President Trump has continued to blast Fed Chairman Jerome Powell, who has resisted pressure from Trump to step down while refusing to bow to Trump’s pressures to cut interest rates.
The vote by FMOC to maintain interest rates where they currently are was unanimous.
