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Fed holds policy rate at 3.50–3.75% in 9–3 vote, chairman stresses 2% inflation goal
Summary
The Federal Reserve's policy committee voted 9–3 to keep the federal funds target range at 3.50–3.75 percent. The chairman said the committee remains committed to restoring 2% inflation and emphasized relying on market signals alongside broader data.
The Federal Reserve voted 9–3 to maintain the target range for the federal funds rate at 3.50 to 3.75 percent, the chairman said at a post-meeting press conference.
The chairman framed the decision as part of a "new chapter" at the Fed, reiterating that the committee's inflation target remains 2 percent and that "there is no soft implicit target." He said the committee's credibility depends on delivering price stability and described the statement as conveying "just the facts." "The committee is continuing its policy of making ample reserves in the banking system," he added.
Why the hold: the chairman cited materially higher nominal and real Treasury yields since the last meeting and said markets have been reacting to real-time data in ways that affect policy judgments. He described the meeting discussion as rigorous and characterized the three dissents as differences over tactics and timing rather than objectives: "It was a real family fight," he said, adding that the debate is a feature, not a flaw, of the process.
What comes next: the chairman said the Fed will continue to monitor market information and a broader set of data to decide future policy moves. He also announced internal task forces to revisit data and policy tools, which he said will inform—but not determine—committee decisions.
Provenance: topicintro SEG 009, topfinish SEG 012.
