Summary
- The US Fed FOMC kept the benchmark interest rate unchanged, but stated that there was no clear mention about the timing of a rate cut.
- It was highlighted that for the first time in 30 years, 2 FOMC governors cast dissenting votes simultaneously, adding uncertainty to the market's outlook for monetary policy.
- The Fed indicated that if economic growth slows, a rate cut may be implemented in the future.
On the 30th (local time), the US Federal Reserve (Fed) Federal Open Market Committee (FOMC) held the benchmark interest rate steady but made no clear statement on the timing of a rate cut.
At this meeting, two governors appointed by President Donald Trump, Christopher Waller and Michelle Bowman, opposed the decision to hold rates, arguing that the current monetary policy is overly restrictive. It is the first time in about 30 years that two governors have simultaneously voted against the decision at an FOMC meeting.
In the statement released after the meeting, the Fed said, "The unemployment rate remains low, and the labor market is strong. Inflation is rising moderately," but also added, "However, economic growth slowed somewhat in the first half of the year, and if this trend continues, a rate cut may occur at a future meeting."
They further noted, "Uncertainty about future economic conditions remains high."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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