WASHINGTON (OBV) — The Federal Reserve on Wednesday voted to maintain its target range for the federal funds rate at 3.5% to 3.75%, citing continued economic expansion, low but stabilizing job gains, and inflation that remains somewhat elevated.
In a statement released following its January meeting, the Federal Open Market Committee said “available indicators suggest that economic activity has been expanding at a solid pace,” while noting that uncertainty around the economic outlook remains elevated.
The Committee reiterated its dual mandate of achieving maximum employment and returning inflation to its long-run target of 2%.
The decision to hold rates steady was supported by Chair Jerome Powell and a majority of voting members. Two members—Stephen Miran and Christopher Waller—dissented, favoring a quarter-percentage-point rate cut at this meeting.
The Committee said it will continue to assess incoming data, evolving risks, and financial and international developments when considering the timing and extent of future policy adjustments.
As part of its implementation actions, the Federal Reserve also voted to maintain the interest rate paid on reserve balances at 3.65%, keep the primary credit rate at 3.75%, and continue open market operations designed to keep the federal funds rate within its target range.
The Fed said it remains prepared to adjust monetary policy as needed if risks emerge that could threaten its employment or inflation goals.
