Will McGough, CIO of Prime Capital Financial, assesses the markets and oil in light of the situation in Iran, earnings season and the Federal Reserve meeting on Mornings with Maria.
This story on the Federal Reserve’s April interest rate decision is developing and will be updated with further details.
The Federal Reserve announced on Wednesday that it will leave interest rates unchanged due to concerns about a further rise in inflation during the war in Iran.
Fed policymakers have chosen to leave the Fed Funds rate unchanged at its current range of 3.5% to 3.75%. The move follows the central bank’s decision to keep interest rates stable in January and March, after three consecutive rate cuts of 25 basis points in September, October and December to end last year.
The Federal Open Market Committee (FOMC), the central bank panel responsible for monetary policy measures, voted 11-1 to leave interest rates unchanged. Fed Governor Stephen Miran did not agree with a 25 basis point cut in interest rates.
Three other FOMC members — Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie Logan — disagreed, opposing the inclusion of language showing a preference for a rate cut. The four total dissents were the highest total for an FOMC meeting since 1992.
The FOMC meeting is expected to be the last led by the Federal Reserve chairman Jerome Powellas his term as Fed chairman ends on May 15. Powell could serve the remainder of his term as a member of the Fed’s Board of Governors.
Federal Reserve Chairman Jerome Powell may remain a member of the Fed’s Board of Governors after the end of his chairmanship. (Li Yuanqing/Xinhua via Getty Images)
The FOMC statement noted that the war in the Middle East is “contributing to a high degree of uncertainty about the economic outlook” and that the economy is growing, with low job growth and high inflation due to the recent rise in global energy prices.
