US Fed divided at Powell’s likely last meeting at helm

WASHINGTON: A divided US Federal Reserve kept interest rates unchanged for a third straight meeting Wednesday (Apr 29) on high uncertainty from the Middle East war, in what was likely its last gathering helmed by Jerome Powell.

“Inflation is elevated, in part reflecting the recent increase in global energy prices,” the central bank said.

Its decision keeps rates at a range between 3.50 per cent and 3.75 per cent.

But four out of 12 voting officials opposed the decision, including Stephen Miran, who sought a quarter-point cut.

Three others – Beth Hammack, Neel Kashkari and Lorie Logan – backed the pause but not the Fed statement signalling an inclination towards lower interest rates.

This was the most number of dissenting votes since 1992, and the divergence among officials will be closely watched.

The Fed has been on a path of rate cuts since late last year.