Federal Reserve Still Sees No Cuts in 2019
Posted on 06/19/2019
The Federal Open Market Committee (FOMC) voted 9-to-1 to keep the benchmark rate in a target range of 2.25% to 2.5%. St. Louis Federal Reserve chairman James Bullard representing the lone dissenting vote, advocating a position to cut interest rates by 25 basis points. Eight members of the FOMC favored at least one rate cut in 2019, while the same number voted for the status quo. One member voted for a rate hike.
U.S. President Donald Trump has been pressuring the Federal Reserve to cut interest rates. In addition, the Federal Reserve removed the word “patient” to describe its approach to monetary policy.
The FOMC is not looking at any one thing. Federal Reserve Chairman Jerome Powell is looking at global growth data, consumer spending, job market, and trade conflicts, as factors in the decision-making. Powell also stated at the news conference that the case for additional accommodation has strengthened. Powell also signaled he intends to serve his 4-year term.
Keywords: Federal Reserve System.
