Face the strong pressure from Trump, the Federal Reserve decided not to cut interest rates

The U.S. Federal Open Market Committee voted 9 to 2 to keep the federal funds rate in the range of 4.25%-4.5%. However, this decision was opposed by Fed governors Bowman and Waller, both of whom advocated that the Fed should begin to ease monetary policy.

This is the first time since 1993 that multiple Fed governors have voted against an interest rate decision. Previously, even if there were differences in opinions, the final vote would maintain the Fed's unified stance to avoid misleading the market.

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Although fluctuations in net exports continue to affect data, recent indicators show that economic activity growth has slowed this year. The unemployment rate remains low, and the labor market remains strong. Inflation is still slightly above the target level.

The Federal Open Market Committee (FOMC) is committed to achieving maximum employment and a 2% inflation rate in the long run. The uncertainty of the current economic outlook is still high, and the committee closely monitors the risks facing both aspects of its dual mandate.

To support these goals, the committee decided to maintain the federal funds rate target range at 4.25% to 4.5%. When considering whether and when to adjust this rate range in the future, the committee will carefully assess the latest economic data, changes in economic outlook, and risk balance.

The committee will continue to reduce its holdings of U.S. Treasury securities, agency bonds, and agency mortgage-backed securities (MBS). The committee is firmly committed to supporting maximum employment and bringing inflation back to the 2% target level.

When assessing the appropriate monetary policy stance, the committee will continue to monitor the impact of newly released information on the economic outlook. If there are risks that could hinder the achievement of the committee's goals, the committee will adjust its policy stance as appropriate.

The committee's assessment will consider various information, including labor market conditions, inflation pressures and expectations, financial markets, and international developments.

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Voting results:

Members who voted to maintain the interest rate unchanged are:

• Chair Jerome H. Powell

• Vice Chair John C. Williams

• Michael S. Barr

• Susan M. Collins

• Lisa D. Cook

• Austan D. Goolsbee

• Philip N. Jefferson

• Alberto G. Musalem

• Jeffrey R. Schmid

Members who opposed this decision are:

• Michelle W. Bowman

• Christopher J. Waller

They advocated lowering the federal funds rate target range by 25 basis points at this meeting.

Members who did not attend and did not participate in the vote are:

• Adriana D. Kugler

Original: https://www.toutiao.com/article/1839110246161417/

Statement: This article represents the views of the author himself.