by Luzi Ann Santos | moomoo News
The Federal Open Market Committee left the target Federal Funds rate unchanged a target of 4.25%-4.5% Wednesday, citing low unemployment rate and solid labor market conditions.
Voting unanimously, the members of the FOMC left out comments on the progress to their 2% inflation target in the latest statement, as they acknowledged that consumer prices "remains somewhat elevated."
In a press conference after the Fed meeting, Chairman Jerome Powell said policymakers aren't in a hurry to resume lowering interest rates."
"I think we see it is having meaningful effects in bringing inflation under control," Powell said, referring to the recent cuts. "It has helped bring the labor market into balance, as well. It is appropriate we not be in a hurry to make further adjustments."
Powell's comments echoed the statement of the FOMC earlier in the afternoon.
"In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks," the policy makers said.
Market focus will turn to Fed Chairman Jerome Powell's press conference where journalists are likely to ask him to comment on President Donald Trump's recent comments calling for the central bank to cut interest rates.
The $S&P 500 Index (.SPX.US)$ was down 0.8%, while $Nasdaq Composite Index (.IXIC.US)$ slipped 1.1% as Wall Street awaits comments from Powell.
"Recent indicators suggest that economic activity has continued to expand at a solid pace," the FOMC said in a statement at the end of the committee's two-day meeting. "The committee judges that the risks to achieving its employment and inflation goals are roughly in balance."
Read our Live Blog here where we bring you the details from Powell's press conference as he speaks to reporters.
What Has Changed in the New Fed Statement
Here is a detailed comparison of the Fed's current and previous statements:
Comment(3)
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No surprises here… should be interesting to see what happens when the inflation rate begins to climb (as a consequence of tariffs, for example). AI, on the face of it, appears to displace employees. Government cuts also mean job losses. This and more leaves the Fed between a rock and and a hard place, wanting to stimulate but knowing that will add fuel to the inflationary fires.
just boost Paul back to 100%
give him his stocks and funds back
and boom no worries 👌
Reason For Report