Fed held interest rates unchanged at 4.25–4.50% as widely expected, but a rare split emerged within the Committee. Governors Michelle Bowman and Christopher Waller dissented, voting in favor of a 25bps cut. Their push to begin easing suggests that internal debate is intensifying, even as the broader Committee maintains a cautious stance.
The statement offered few surprises, characterizing economic activity as having “moderated” in the first half of the year. Labor market conditions remain “solid” with “low” unemployment, while inflation remains “somewhat elevated.”
Fed reiterated its vigilance toward risks on “both sides of its dual mandate”, but stopped short of signaling a policy shift.
