Fed forgoes interest rate cut as inflation lingers
Are they actually going to vote on something real?
The Federal Reserve voted Wednesday to hold its interest rate target steady as inflation remains elevated.
After a two-day meeting in Washington, the Fed’s monetary policy committee announced it would hold its rate target at a range of 3.50% to 3.75%. Investors had expected that outcome, but President Donald Trump has pushed hard for more aggressive rate cuts. The central bank has not cut rates in 2026, after implementing cuts at three successive meetings to end 2025.
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Fed governor Stephen Miran, who was appointed by Trump, voted against the decision, preferring a quarter percentage point rate cut.
The Wednesday decision to hold interest rates steady comes as the labor market undergoes a slowdown that some argue should necessitate lower interest rates. Still, the softening of the labor market has not progressed to a point that would force the Fed to cut rates rapidly.
The economy shed 92,000 jobs in February, and the unemployment rate edged up to 4.4%, the Bureau of Labor Statistics said last Friday.
But the Fed weighs not only the labor market, but also inflation when deciding the best course of action for monetary policy. And inflation has remained above the Fed’s 2% long-run target, something that the Fed board sees as necessitating tighter monetary policy.
In the central bank’s preferred gauge, the personal consumption expenditures index, inflation fell one-tenth of a percentage point in January to 2.8%. Inflation has been a bit lower in the more widely watched consumer price index.
While still high, inflation is lower than during the worst of the Biden administration years, when prices rose as much as 7% in one year.
The Fed also released updated multiyear projections for inflation, GDP, and unemployment, as it does every other meeting.
Fed officials said they see inflation, as gauged by the personal consumption expenditures index, running at 2.7% by the end of the year. That is an increase from the board’s last projections in December, when they predicted inflation would fall to 2.4% by the end of 2026.
The officials also projected that the unemployment rate would remain at 4.4% by the end of this year.
In terms of gross domestic product growth, they predict 2.4% GDP growth this year, an increase from December, when board participants were projecting more modest 2.3% growth in 2026.
The latest interest rate decision also comes at a tumultuous time at the Fed, which has …
Are they actually going to vote on something real?
The Federal Reserve voted Wednesday to hold its interest rate target steady as inflation remains elevated.
After a two-day meeting in Washington, the Fed’s monetary policy committee announced it would hold its rate target at a range of 3.50% to 3.75%. Investors had expected that outcome, but President Donald Trump has pushed hard for more aggressive rate cuts. The central bank has not cut rates in 2026, after implementing cuts at three successive meetings to end 2025.
DEMOCRATIC PRESIDENTIAL CONTENDERS EYE TAX CUTS TO WOO GOP VOTERS
Fed governor Stephen Miran, who was appointed by Trump, voted against the decision, preferring a quarter percentage point rate cut.
The Wednesday decision to hold interest rates steady comes as the labor market undergoes a slowdown that some argue should necessitate lower interest rates. Still, the softening of the labor market has not progressed to a point that would force the Fed to cut rates rapidly.
The economy shed 92,000 jobs in February, and the unemployment rate edged up to 4.4%, the Bureau of Labor Statistics said last Friday.
But the Fed weighs not only the labor market, but also inflation when deciding the best course of action for monetary policy. And inflation has remained above the Fed’s 2% long-run target, something that the Fed board sees as necessitating tighter monetary policy.
In the central bank’s preferred gauge, the personal consumption expenditures index, inflation fell one-tenth of a percentage point in January to 2.8%. Inflation has been a bit lower in the more widely watched consumer price index.
While still high, inflation is lower than during the worst of the Biden administration years, when prices rose as much as 7% in one year.
The Fed also released updated multiyear projections for inflation, GDP, and unemployment, as it does every other meeting.
Fed officials said they see inflation, as gauged by the personal consumption expenditures index, running at 2.7% by the end of the year. That is an increase from the board’s last projections in December, when they predicted inflation would fall to 2.4% by the end of 2026.
The officials also projected that the unemployment rate would remain at 4.4% by the end of this year.
In terms of gross domestic product growth, they predict 2.4% GDP growth this year, an increase from December, when board participants were projecting more modest 2.3% growth in 2026.
The latest interest rate decision also comes at a tumultuous time at the Fed, which has …
Fed forgoes interest rate cut as inflation lingers
Are they actually going to vote on something real?
The Federal Reserve voted Wednesday to hold its interest rate target steady as inflation remains elevated.
After a two-day meeting in Washington, the Fed’s monetary policy committee announced it would hold its rate target at a range of 3.50% to 3.75%. Investors had expected that outcome, but President Donald Trump has pushed hard for more aggressive rate cuts. The central bank has not cut rates in 2026, after implementing cuts at three successive meetings to end 2025.
DEMOCRATIC PRESIDENTIAL CONTENDERS EYE TAX CUTS TO WOO GOP VOTERS
Fed governor Stephen Miran, who was appointed by Trump, voted against the decision, preferring a quarter percentage point rate cut.
The Wednesday decision to hold interest rates steady comes as the labor market undergoes a slowdown that some argue should necessitate lower interest rates. Still, the softening of the labor market has not progressed to a point that would force the Fed to cut rates rapidly.
The economy shed 92,000 jobs in February, and the unemployment rate edged up to 4.4%, the Bureau of Labor Statistics said last Friday.
But the Fed weighs not only the labor market, but also inflation when deciding the best course of action for monetary policy. And inflation has remained above the Fed’s 2% long-run target, something that the Fed board sees as necessitating tighter monetary policy.
In the central bank’s preferred gauge, the personal consumption expenditures index, inflation fell one-tenth of a percentage point in January to 2.8%. Inflation has been a bit lower in the more widely watched consumer price index.
While still high, inflation is lower than during the worst of the Biden administration years, when prices rose as much as 7% in one year.
The Fed also released updated multiyear projections for inflation, GDP, and unemployment, as it does every other meeting.
Fed officials said they see inflation, as gauged by the personal consumption expenditures index, running at 2.7% by the end of the year. That is an increase from the board’s last projections in December, when they predicted inflation would fall to 2.4% by the end of 2026.
The officials also projected that the unemployment rate would remain at 4.4% by the end of this year.
In terms of gross domestic product growth, they predict 2.4% GDP growth this year, an increase from December, when board participants were projecting more modest 2.3% growth in 2026.
The latest interest rate decision also comes at a tumultuous time at the Fed, which has …
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