Fed Holds Rates with 4 Dissents, Most Since 1992

The Federal Open Market Committee (FOMC) voted to leave all five policy rates unchanged for the third consecutive meeting, maintaining the federal funds rate target range at 3.5%-3.75%. This decision followed three rate cuts in 2025 totaling 75 basis points and three cuts in 2024 totaling 100 basis points. The meeting saw four dissents, the highest number since 1992. Stephen I. Miran dissented in favor of a 25-basis-point cut, while Beth M. Hammack, Neel Kashkari, and Lorie K. Logan dissented because they opposed the inclusion of an easing bias in the statement, preferring a symmetrical stance that would allow for either a cut or a hike. The statement reflected increased concern about inflation, citing elevated levels partly due to recent increases in global energy prices, and noted that developments in the Middle East are contributing to high uncertainty about the economic outlook. Economic activity was described as expanding at a solid pace, with job gains remaining low and the unemployment rate little changed. The FOMC reiterated its commitment to maximum employment and 2% inflation, and its readiness to adjust policy as risks emerge. This was a no-dot-plot meeting; the next Summary of Economic Projections will be released at the March meeting. Voting for the action were Chair Jerome H. Powell, Vice Chair John C. Williams, Michael S. Barr, Michelle W. Bowman, Lisa D. Cook, Philip N. Jefferson, Anna Paulson, and Christopher J. Waller.