Fed holds rate steady; 2 members dissent

The Federal Reserve headquarters

The Federal Reserve held interest rates steady, on Jan. 28, at a range of 3.50% to 3.75%, in line with market expectations, after cutting them by 25 basis points at each of its previous three meetings.

According to FOMC statement, 10 members voted to keep interest rates unchanged, including Chair Jerome Powell. Two members dissented, calling for a 25-basis-point rate cut, namely, Stephen Miran and Christopher Waller.

Economic activity is growing at a strong pace, however, job creation remains slow.

The unemployment rate is showing some signs of stabilization, while inflation remains elevated.

Uncertainty continues to surround the economic outlook.

FOMC also noted that it is paying close attention to risks related to our inflation and employment objectives, confirming that any adjustment to interest rates will be based on an assessment of data and risks.

The committee is also prepared to adjust the policy stance if necessary and will take into account labor market conditions, inflation, and financial and international developments.