WASHINGTON – The Federal Reserve chose to keep rates the same Wednesday, giving no indication it plans to lower rates in the near term.
The Fed chose to hold rates steady at a range of 4.25% to 4.5%, citing concerns over inflation and uncertainty regarding President Trump’s economic policies.
“In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee 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% objective,” the Fed stated.
“In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook,” the Fed continued. “The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.”
Curt Long, America’s Credit Unions Deputy Chief Economist, noted that during Fed Chair Jerome Powell’s press conference, he sounded optimistic that inflation is poised to decline.
"Wwhich could present opportunities later in the year to reduce rates," Long said. "Regardless of the rate environment, credit unions will continue to pass along enormous benefits to their members, boosting the overall economy in the process.”