Federal Reserve Board Chairman Jerome Powell holds a press conference after a meeting of the Federal Open Market Committee.
This is a developing story about the Federal Reserve’s March rate cut decision. Check back later for updates.
The Federal Reserve announced on Wednesday that it would leave interest rates unchanged amid a weakening labor market and growing uncertainty over 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, following three consecutive rate cuts of 25 basis points in September, October and December, ending last year.
Economic data showing that the labor market is slowing, inflation remains higher than the Fed’s 2% target and unrest in Iran has prompted policymakers to continue suspending interest rate cuts.
Federal Reserve Chairman Jerome Powell has said the central bank is well positioned to respond to incoming economic data. (Chip Somodevilla/Getty Images/Getty Images)
The Federal Open Market Committee (FOMC) voted 11-1 in favor of leaving rates unchanged, with the only dissenting opinion being Fed Governor Stephen Miran, who favored a 25 basis point cut.
The FOMC statement noted that economic indicators suggest the economy is growing at a robust pace, with low job growth and somewhat elevated inflation.
It also noted that uncertainty surrounding the economic outlook “remains high” and that the “implications of developments in the Middle East for the US economy are uncertain.”
Federal Reserve Jerome Powell will hold a news conference to discuss the decision.
