Fed Keeps Rates On Hold Even As Consensus Breaks Down
The Federal Reserve downgraded its assessment of the economy even as it held interest rates steady for a fifth straight meeting, and stopped short of executing the sort of communications pivot that might have prepared markets for an imminent rate cut. The Federal Open Market Committee voted in a split 9-2 decision to maintain the target range for the federal funds rate between 4.25 to 4.50 percent—a level reached in December after a series of cuts in the second half of 2024—with Trump appointees Michelle Bowman and Christopher Waller dissenting from the majority. This is highly unusual—the last time two...