Fully in Wait-and-See Mode, Fed Keeps Rates at 4.25%-4.50%, Frets About Higher Uncertainty, Higher Inflation, and Higher Unemployment

by Wolf Richter
Wolf Street

QT Continues at the slower pace announced in March.

The FOMC voted unanimously today to keep the Fed’s policy rates unchanged for the third meeting in a row, after cutting its policy rates by 100 basis points in 2024. Rate cuts remained in the fog of the future, as the Fed’s policy focus has shifted to both, inflation that has become persistent and that the Fed worries could accelerate, and the labor market that has remained solid but could weaken.

It kept its five policy rates at:

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