The Great Rate Debate

The Federal Reserve held its benchmark interest rate steady today, maintaining the target range at 4.25%–4.50%. Fed Chair Jerome Powell characterized current policy as “modestly restrictive,” citing a labor market that remains “solid” with “historically low unemployment.” With investors widely expecting no change to the target rate this month, perhaps the most notable shift from this meeting came from dissent within the committee. 

For the first time since 1993, two FOMC Governors dissented: Michelle Bowman and Christopher Waller voted in favor of a rate cut. While the double dissent is rare, it is not exactly a huge surprise given recent Fedspeak.

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