Fed leaves rates unchanged between 3.50% and 3.75%

The Federal Reserve has maintained its benchmark interest rate, leaving the target range steady at 3.50% to 3.75% following its latest board meeting. This decision aligns with market expectations, though it was marked by internal dissent.

Three members of the Federal Open Market Committee (FOMC) voted in favor of a quarter-percentage-point increase. These dissenting votes came from regional Federal Reserve Bank presidents, Beth Hammack of Cleveland, Neel Kashkari of Minneapolis, and Lorie Logan of Dallas. They expressed a clearer need for higher rates to combat inflation, which has remained above the Fed's 2% objective for over five years.

“

L'economia Usa "sta dimostrando una impressionante resilienza, nonostante i recenti shock. Le tendenze sono positive e indicano una crescita solida. L'aumento dell'occupazione ha tenuto il passo con l'espansione della forza lavoro e il tasso di disoccupazione ha subito variazioni minime. L'inflazione rimane elevata rispetto all'obiettivo del 2% fissato dal Comitato"

In a press conference, Fed Chair Kevin Warsh highlighted the U.S. economy's "impressive resilience" despite recent shocks, noting positive trends and solid growth. He also pointed to steady job growth and minimal fluctuations in the unemployment rate. However, Warsh acknowledged that inflation remains elevated compared to the 2% target.

Warsh stressed the Fed's unwavering commitment to its 2% inflation objective, stating, "There is no 'soft' inflation target. There is no implicit 'soft' target, not under this Committee's guidance. There is one target, and it is 2%." He recognized that the persistent inflation exceeding the target for over five years cannot be resolved quickly, emphasizing that the Fed's credibility depends on fulfilling its duties and taking responsibility.

“

abbiamo aperto un nuovo capitolo e siamo consapevoli che gli oltre cinque anni di inflazione al di sopra dell'obiettivo non possono essere risolti in nove settimane, né grazie a un singolo mese di modesti cali dei prezzi. La nostra credibilità poggia sull'adempimento dei nostri doveri e sull'assunzione delle responsabilità