President Donald Trump speaks to new Federal Reserve Chair Kevin Warsh at his swearing in ceremony in May. The Fed decided to keep interest rates where they are at Warsh’s first meeting. File Photo by Yuri Gripas/UPI | License Photo
The Federal Reserve left interest rates as they are in new Chairman Kevin Warsh’s first meeting Wednesday.
In a short statement after the meeting, Warsh said the Federal Open Market Committee decided to maintain the target range for the federal funds rate at 3.5% to 3.75%.
“Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little,” Warsh said in the statement.
“Inflation remains elevated relative to the Committee’s 2% goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability.”
Stocks dropped after the announcement, CNN reported.
The Dow dropped 183 points, or 0.35%. The S&P 500 and Nasdaq each fell about 0.8%.
Treasury yields climbed higher as traders adjusted to the possibility of higher interest rates, CNN said. The two-year yield rose almost 10 basis points to 4.14%.
This week in Washington
President Donald Trump speaks to reporters about restoring commercial fishing access to areas of the Pacific during a signing ceremony in the Oval Office of the White House on Thursday. Photo by Jim Lo Scalzo/UPI | License Photo
