The US Federal Reserve announced Wednesday that it would keep its benchmark interest rates unchanged for the third consecutive time, while signaling the possibility of a rate cut in the coming months. This decision faced the most dissenting vote within the Federal Open Market Committee (FOMC) since October 1992. The Fed maintained the short-term interest rate at 3.6%, while retaining language indicating that a rate cut could be the next step.
Three officials objected to this reference, calling for its removal, while a fourth member, Stephen Miran, opposed the entire decision, advocating for an immediate rate cut.
These objections reflect the deep divisions within the 12-member Federal Open Market Committee (FOMC) ahead of Chairman Jerome Powell’s departure on May 15. The Senate Banking Committee had previously approved Kevin Warsh, Trump’s nominee, as Powell’s successor.
In a statement released after its two-day meeting, the committee said: “Developments in the Middle East are contributing to increased uncertainty about the economic outlook. Inflation has risen, partly reflecting the recent increase in global energy prices.”
