WASHINGTON–The Federal Reserve has opted to make no changes in interest rates following the conclusion of its meeting here, but it has indicated it could move as soon as next month to cut rates if the United States and China aren’t able to find ways to resolve their trade dispute. As a result, it For now, the Fed left its short-term rate at a range of 2.25% to 2.5%. Eight of the 17 voting Fed policymakers did predict there could be as a half percentage point decline in rates in 2019.
In a statement following its meeting, the Fed did dial down a bit its forecast for the economy.
“In light of these uncertainties and muted inflation pressures, the FOMC will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market” and inflation near the Fed’s 2% goal,” the Fed said.
Fed Chairman Jerome Powell in recent interviews has expressed concerns over what he called “cross-currents” in the economy. Inflation remains below the Fed’s goal of 2% annually, and the most recent jobs numbers were relatively small.
President Trump has recently announced plans to assess a 25% tariff on the remaining $300 billion in Chinese imports not already hit with a such a tariff.