The Federal Reserve on Wednesday announced it will leave interest rates unchanged amid concerns about inflation rising further amid the war in Iran.
Fed policymakers voted to leave the benchmark federal funds rate unchanged at its current range of 3.5% to 3.75%. The move follows the central bank’s decision to hold rates steady in January and March after three successive 25-basis-point rate cuts in September, October and December to close out last year.
The Federal Open Market Committee (FOMC), the central bank’s panel responsible for monetary policy moves, voted 11-1 to leave interest rates unchanged. Fed Governor Stephen Miran dissented in favor of a 25-basis-point cut.
The FOMC meeting is expected to be the last under the leadership of Federal Reserve Chairman Jerome Powell, as his term as Fed chairman is due to expire on May 15. Powell said at his press conference that he intends to continue serve his term as a member of the Fed’s Board of Governors for a period of time that’s to be determined due to his concerns regarding the Trump administration’s investigations of the Fed.