Fed Leaves Rates Unchanged, Miran and Waller Dissent

Summary

Michael McKee reports that the Federal Reserve left its benchmark rate unchanged at 3.5%-3.75%, with Governors Waller and Miran dissenting in favor of a cut. The statement kept language leaving further cuts possible but gave no timing or trigger, and the brief economic assessment noted solid activity, low job gains, stabilizing unemployment and somewhat elevated inflation. The New York Fed desk was again told to maintain ample reserves by buying Treasury bills or maturities up to three years, and focus now turns to Chair Powell's news conference.

• Fed holds rates at 3.5%-3.75% on a 10-2 vote
• Waller and Miran dissent in favor of a rate cut; Bowman votes with the majority
• Statement keeps the option of future cuts open without signaling timing
• Assessment cites solid activity, low job gains and somewhat elevated inflation
• NY Fed desk again told to maintain ample reserves via Treasury bill purchases
• Waller's dissent read as possible positioning in Fed chair succession
• Focus shifts to Powell's news conference