WASHINGTON— Despite renewed pressure from President Trump for an interest-rate cut, the Federal Reserve on Wednesday held rates steady, maintaining the federal funds target range at 4.25% to 4.50%.
“Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated,” the Fed stated.
In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Fed stated it will carefully assess incoming data, the evolving outlook, and the balance of risks.
“The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective,” the Fed concluded.
America's Credit Unions Chief Economist Curt Long pointe out Fed Chair Jerome Powell recently conveyed the elevated level of uncertainty attached to the committee’s economic outlook and the need for the committee to be highly data dependent going forward.
"This suggests that the Fed will have a more reactive posture than normal and raises the risk that it may act too late to stabilize the economy should growth weaken. Regardless, credit unions will serve as positive, local sources of financial stability within their communities," Long said.