Fed leaves interest rates unchanged between 3.50 % and 3.75 %. Powell: my last session, best wishes to Warsh

The Federal Reserve Board kept interest rates unchanged for the third consecutive meeting, in the face of high uncertainty stemming from the war in the Middle East, in what was likely to be the last monetary policy meeting chaired by Powell. "Inflation is elevated and reflects, in part, the recent increase in global energy prices," a note reported, confirming rates within a range of 3.50% to 3.75%. However, four of the 12 board members opposed the decision, while three monetary policymakers supported the pause, although they showed no inclination towards a future interest rate cut. The case of four votes against on the board on monetary policy decisions is the first of its kind since October 1992, signalling a possible change of pace with the forthcoming arrival at the helm of the Fed of Kevin Warsh, wanted by Donald Trump. Specifically voting in favour of the monetary policy action were: Jerome Powell, John Williams, Michael Barr; Michelle Bowman, Lisa Cook, Philip Jefferson; Anna Paulson and Christopher Waller. Voting against were: Stephen Miran, who wanted a 25 basis point cut; Beth Hammack, Neel Kashkari and Lorie Logan, who were in favour of maintaining the target range for the federal funds rate, but not of including an expansionary stance in the statement.

"This was my last session as head of the Fed, I wish my successor Kevin Warsh well," Fed Chairman Jerome Powell said in the briefing following the monetary policy board's meeting that left rates unchanged for the third session over. The US economy "has expanded at a solid pace, but prices have moved higher, above the Fed's 2 per cent target," he added.