Fed Holds Rates Steady for Fifth Time as Three Votes Favor Hike

Federal Reserve maintains 3.50%-3.75% rate with 9:3 vote, marking first three dissenting votes for hikes since 2016. Powell rejects 'pause' label, reaffirming 2% inflation target and readiness to raise rates if necessary.

Woofun AI reports that the Federal Reserve maintained the federal funds rate at 3.50%-3.75% for the fifth consecutive meeting, approved by a 9:3 vote. This marks the first instance since 2016 where three regional Fed presidents dissented in favor of a rate increase. Fed Chair Powell emphasized that the central bank does not have a "soft inflation target", reiterating its sole goal of 2% inflation. He stated the Fed will not hesitate to raise rates when necessary and appropriate, clarifying that the current decision is not a "pause" but part of an ongoing policy process. Powell noted robust U.S. economic activity, strong productivity, and solid labor market progress toward full employment. He acknowledged extensive internal discussions regarding the dissenting votes but confirmed overwhelming majority support for the final decision.