US Fed policy LIVE updates: Powell-led FOMC hold status quo on interest rate
The Federal Open Market Committee (FOMC) voted 8-4 to keep the benchmark interest rate unchanged, with four members dissenting, the first time since 1992 that as many as four FOMC members dissented. The decision was made amid uncertainty about the economic outlook due to the conflict in the Middle East.
The Federal Open Market Committee (FOMC) held its key interest rate steady in an 8-4 vote, with four members dissenting. The decision marked the most divided Fed policy outcome in over three decades. Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan supported maintaining the target range for the federal funds rate but opposed an easing bias in the statement. Governor Stephen Miran dissented in favor of a quarter-point reduction in rates. The FOMC slightly changed its statement, noting that developments in the Middle East are contributing to a high level of uncertainty about the economic outlook. The US-Iran conflict has led to a surge in oil prices, with Brent crude hitting its highest since 2022. As a result, money markets have abandoned wagers on a rate cut this year and begun pricing in the chances of a hike in 2027. Treasury 10-year yields rose to a one-month high, hitting 4.4%. The S&P 500 and Nasdaq Composite fell 0.3%, while the Dow Jones Industrial Average dropped 364 points, or 0.8%.
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