WASHINGTON, D.C. – Despite some indicators that the U.S. economy “continues to expand,” the Federal Reserve today announced it will not lower interest rates, and President Donald Trump was furious.
Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace, according to a statement today from the Federal Reserve in connection to their decision on whether to raise or lower interest rates. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated.
The Federal Reserve Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook has diminished but remains elevated. The Committee is attentive to the risks to both sides of its dual mandate.
In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, Chair (pictured at top, left, via C-SPAN); John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Susan M. Collins; Lisa D. Cook; Austan D. Goolsbee; Philip N. Jefferson; Adriana D. Kugler; Alberto G. Musalem; Jeffrey R. Schmid; and Christopher J. Waller.
“Maybe I should go to the Fed,” Trump said at a press conference Wednesday after hearing the news. “Am I allowed to appoint myself at the Fed? I’d do a much better job than these people.
“Biden reappointed him,” Trump continued. “I don’t know why that is, but I guess maybe he was a Democrat… he’s done a poor job.”
I like to see Americans who refuse to bow down to the clown. Good job.