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Fed Holds Rates at 3.50%–3.75% in 10–2 Vote, Halting Three-Cut Easing Run

Officials pointed to persistent inflation alongside elevated uncertainty, signaling a data‑driven path for any next step.

Overview

  • Governors Stephen Miran and Christopher Waller dissented, favoring an additional 25‑basis‑point cut.
  • The statement cited solid growth with inflation still elevated and emphasized evaluating incoming data before further adjustments.
  • The hold interrupts a sequence of three quarter‑point reductions that began in September.
  • The decision unfolded as President Trump pushed for deeper cuts and as media reported a Justice Department inquiry involving Chair Jerome Powell.
  • Powell defended the Fed’s independence and noted unemployment has stabilized even as price pressures persist.