Full text of the Federal Reserve's decision: Maintain interest rates unchanged, three members voted for a rate hike
Complete. Here is the key summaryOn July 30, the Federal Reserve decided to maintain the benchmark interest rate at 3.50%-3.75%, marking the fifth consecutive time it has held steady. The voting result was 9-3, with three regional Federal Reserve presidents casting dissenting votes in favor of a 25 basis point rate hike, the first instance of three votes in the same direction since 2016. The statement noted that the economy is expanding robustly, but inflation remains above the target, and the committee is committed to achieving price stability
On July 30th, Beijing time, the Federal Reserve kept the benchmark interest rate unchanged at 3.50%-3.75%, marking the fifth consecutive meeting without action. The voting ratio was 9-3, with three members voting in favor of a rate hike.
“Federal Reserve mouthpiece” Nick Timiraos stated that the FOMC decided to maintain the interest rate unchanged with 9 votes in favor and 3 against. Three regional Fed presidents cast dissenting votes, advocating for a 25 basis point increase. This is the first time since 2016 that three votes in the same direction appeared in a single policy decision by the Federal Reserve.
Full Policy Statement
The Federal Open Market Committee passed the following statement with 9 votes in favor and 3 against:
The Committee decided to maintain the target range for the federal funds rate at 3.5%-3.75% to support the Federal Reserve's dual mandate. The Committee continues to implement a policy of maintaining ample reserves in the banking system.
Despite high uncertainty (partly stemming from conflicts in the Middle East), economic activity continues to expand at a robust pace. Productivity growth and capital investment remain strong. Employment growth is in line with the increase in the labor force, and the unemployment rate has not changed significantly.
Inflation remains elevated compared to the Committee's 2% target, partly due to supply shocks driving up prices in certain sectors, including energy. The Committee is committed to achieving price stability.
The dissenting votes in this monetary policy action came from Beth M. Hammack, Neel Kashkari, and Lorie K. Logan. They favored raising the target range for the federal funds rate by 25 basis points at this meeting.
