The Federal Reserve held its benchmark interest rate steady at a range of 3.50% to 3.75% for a third consecutive meeting, but the decision exposed growing divisions within the central bank over the path forward for monetary policy.
Governor Stephen Miran issued his sixth consecutive dissent, favoring a 25-basis-point rate cut, signaling continued concern about the trajectory of economic growth and inflation. At the same time, three regional Fed presidents, Beth Hammack of Cleveland, Neel Kashkari of Minneapolis and Lorie Logan of Dallas, supported holding rates steady but pushed for clearer guidance that future policy moves are not pre-committed.
The disagreement marks the most dissents within the Federal Open Market Committee since 1992.
“In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” the committee said.
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