FOMC holds rate steady

The Federal Open Market Committee voted Wednesday to hold interest rates steady at 4.25 to 4.5 percent despite pressure from President Trump to lower rates.

New figures on Wednesday showed second-quarter GDP growth of 3% and increased consumer spending. However, in its official statement, the FOMC said inflation “remains somewhat elevated” and that “uncertainty about the economic outlook remains elevated.”

“Higher tariffs have begun to show through more clearly in prices of some goods, but their overall effects on economic activity and inflation remain to be seen,” Chair Jerome Powell said in the post-meeting press conference.

Michelle Bowman and Christopher Waller voted to lower the target range for the federal funds rate by 1/4 percentage point. It was the first time since 1993 that the Committee had two dissents.