In a split decision, the Federal Reserve on Wednesday left its key policy rate unchanged yet again, hours after President Donald Trump called on Fed Chair Jerome Powell to cut rates and boost the housing market.
As was widely expected, Fed policymakers left the central bank’s overnight rate unchanged at a range of 4.25% to 4.5%, where it has remained since December. But for the first time in 30 years, two voting members of the Federal Open Markets Committee dissented with the majority.
Fed Governors Michelle W. Bowman and Christopher J. Waller instead voted for a quarter-point rate cut, marking the first time since 1996 that more than one FOMC member has diverged from the consensus.
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Earlier in the day, Trump had written on his Truth Social site that Powell “MUST NOW LOWER THE RATE,” adding, “Let people buy, and refinance, their homes!”
Mortgage rates have remained stuck above 6.6% since the beginning of the year, contributing to historically bad affordability conditions for homebuyers and severely depressed home sales activity.
In public comments, Powell has said that the Fed remains concerned about the impact of Trump’s trade policy on both inflation and the labor market, and plans to take a cautious approach before lowering rates.
Developing story, more to follow.