The Federal Reserve does not change important interest rates amidst economic uncertainty
Kudlow panelists David Bahnsen and Ej Antoni are discussing the possibility of removing the Fed’s chair Jerome Powell from their office.
The Federal Reserve on Wednesday announced it would not change benchmark interest rates as policymakers continue to monitor inflation and labor market amid rising levels of economic uncertainty.
As per the central bank’s decision, the benchmark federal funding rate ranges from 4.25% to 4.5%.
It follows three consecutive interest rate cuts at the previous meeting after the Fed left at that level at two previous meetings in January and March.
The Federal Open Market Committee (FOMC), which will lead central bank monetary policy moves, announced that “the (U) certainty regarding the economic outlook has increased further,” adding that the Fed is monitoring risks on both sides of its dual mission, increasing the risk of higher unemployment and higher inflation.
“While the swings in net exports have affected the data, recent indicators suggest that economic activity continues to expand at a steady pace,” FOMC writes. “Unemployment has been stable at low levels over the past few months, and labor market conditions remain strong. Inflation remains somewhat rising.”
This is a developing story. Please check for updates.