The Federal Reserve, despite public pressure from Donald Trump, on the afternoon of Jan. 28 revealed that it has decided not to lower interest rates at this time. Trump, in addition to pressing the Fed to cut interest rates again, has said he wants to get rid of Fed Chairman Jerome Powell who has resisted Trump’s efforts to control actions of the agency.
“Available indicators suggest that economic activity has been expanding at a solid pace,” the Fed’s Open Market Committee (FOMC) said. “Job gains have remained low, and the unemployment rate has shown some signs of stabilization. Inflation remains somewhat elevated.”
The committee said it still seeks to achieve maximum employment and inflation at the rate of 2% over the longer run. In support of its goals, the FOMC decided to maintain the target range for the federal funds rate at 3-1/2% to 3-3/4%. It said it is strongly committed to supporting maximum employment and returning inflation to its 2% objective.
The FOMC said that it would be prepared to “adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the committee’s goals.”
The FOMC said it would continue to monitor a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
Two of Trump’s allies on the FOMC, Stephen Miran and Christopher Waller, voted against holding interest rates steady and indicated they wanted a 1/4% drop right now.
