According to the Fed's decision, the US basic interest rate will continue to be maintained at a range of 4.25% to 4.5%. Nine members of the Federal Open Market Committee agreed to maintain the interest rate while two members supported a reduction.
This is the first time the Commission has had a disagreement between two members in 30 years.
Speaking to reporters on the same day, Fed Chairman Jerome Powell said: “ We will continue to determine the appropriate stance of monetary policy based on incoming data, the outlook for developments, and the balance of risks. Changes in government policy are still ongoing and their impact on the economy remains unclear.
Higher tariffs have begun to show up in the prices of some goods, but their overall impact on economic activity and inflation remains unclear. A plausible baseline scenario is that the impact on inflation is likely to be short-lived, reflecting a temporary change in the price level.
However, there is also the possibility that inflationary impacts could be more persistent, and that is a risk that needs to be assessed and managed. We have an obligation to maintain long-term inflation expectations at a stable level and to prevent one-off price increases from becoming persistent inflationary problems.
We are now well positioned to learn more about possible developments in the economy and the balance of risks before adjusting our policy stance .”
This is the fifth time the Fed has decided to keep interest rates unchanged despite pressure from the Trump administration to lower interest rates.
President Donald Trump previously predicted that the Fed would not raise interest rates and would likely do so in September. Mr. Trump had criticized the Fed Chairman for not raising interest rates in the context of a significant increase in investment flows into the US and no longer having inflation in the US.
Source: https://vtcnews.vn/fed-giu-nguyen-lai-suat-bat-chap-suc-ep-tu-tong-thong-my-ar957147.html
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