The Federal Reserve kept interest rates unchanged as expected, with Waller and Milan voting against it.

The Federal Reserve kept interest rates unchanged today, citing persistently high inflation and robust economic growth. The policy statement offered little clue as to when another rate cut might occur. The Fed decided to maintain the benchmark interest rate in the 3.50%–3.75% range by a 10-2 vote. The statement said, “Economic activity continues to expand at a solid pace.” Governors Waller and Milan voted against a 25-basis-point cut. The statement did not signal the timing of the next rate cut, only noting that the magnitude and timing of “further adjustments” would depend on subsequent data and the economic outlook. Meanwhile, the Fed stated that inflation “remains slightly high” and that the labor market “has shown some signs of stabilization.” Although the Fed noted that “job growth remains low,” it removed statements from its previous statements regarding increased downside risks to employment, indicating that policymakers’ overall concerns about a rapid decline in the labor market have eased. (Jinshi)