Fed Holds Rates at 3.50%-3.75% Despite Three Dissents for Quarter-Point Hike
JH Kim
Summary
- The Federal Reserve said it held its benchmark interest rate unchanged at 3.50%-3.75%.
- The Federal Open Market Committee voted 9-3 to hold rates, with three members dissenting in favor of a 25-basis-point hike.
- The Fed said inflation remains above its 2% target, and the three dissents backing a rate increase signal stronger hawkish sentiment within the central bank.
Forecast Trend Report by Period
The Federal Reserve left its benchmark interest rate unchanged at 3.50% to 3.75%, saying inflation remains above its 2% target even as the U.S. economy continues to post solid growth.
Walter Bloomberg reported on July 29 that the decision passed the Federal Open Market Committee in a 9-3 vote. Beth Hammack, Neel Kashkari and Lorie Logan dissented in favor of a 25-basis-point increase.
In its statement, the Fed said productivity gains and solid job growth are continuing and that reserve balances in the banking system remain ample. With inflation still running above target, the three dissents calling for a rate increase signal a more hawkish tilt within the Fed.
JH Kim
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