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Fed holds federal funds rate target range at 3.5% to 3.75%

The Fed voted 9 to 3 to keep the target range unchanged, with three policymakers preferring a 0.25 percentage point increase.

Reported · Written up by our desk · Central Banks

The Federal Reserve maintained the target range for the federal funds rate at 3.5% to 3.75%, approving the decision by a 9 to 3 vote, the central bank said in its FOMC statement.

In the statement, the Fed said it would continue maintaining ample reserves in the banking system and described economic activity as expanding at a solid pace despite elevated uncertainty tied in part to the conflict in the Middle East.

The Fed said job gains have kept pace with the workforce and the unemployment rate has changed little, while inflation remains elevated relative to its 2% goal, including due to supply shocks that have pushed up prices in certain sectors such as energy.

Three voters, Beth M. Hammack, Neel Kashkari, and Lorie K. Logan, voted against the policy action, each preferring to raise the target range by 0.25 percentage point at this meeting.

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