by Ben Whedon
The Federal Reserve on Wednesday opted to keep interest rates steady, despite the installation of Kevin Warsh as Fed chairman, the Wall Street Journal reported.
The Federal Reserve released a statement saying it “decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, in support of the Federal Reserve’s dual mandate. The Committee is continuing its policy of maintaining ample reserves in the banking system.”
“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,” the Federal Reserve said.
“Inflation remains elevated relative to the Committee’s 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability,” it added.
Trump had appointed Warsh to replace Powell, whom he repeatedly criticized for his hesitance to lower interest rates.
Warsh was confirmed in May and previously opted to hold rates steady in the June Fed meeting. The agency had been expected to hold rates constant yet again.
Concerns over the independence of the Fed during the Trump administration have been prominent, especially among Democrats, and amid Trump’s efforts to prematurely oust the last chairman, Jerome Powell.
But Trump’s preferred replacement has appeared no more willing to lower rates than his predecessor.
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Ben Whedon is a reporter for Just the News. Zachery Schmidt is the digital editor of The Star News Network and contributed to this story.
