The Fed left interest rates unchanged at 3.50–3.75%, in line with expectations, but the decision was not unanimous. Two governors—Stephen Miran and Christopher Waller—dissented, preferring an immediate 25bp rate cut.
Despite the dissent, the statement offered no clear signal that a rate cut is imminent at the next meeting. The overall tone remained cautious rather than preparatory, suggesting the majority remains unconvinced that conditions yet warrant an easing move.
The Fed described economic activity as expanding at a “solid pace”,. While noting that job gains have remained low and the unemployment rate has shown signs of stabilization. Inflation was again characterized as “somewhat elevated”.
Uncertainty around the outlook remains high. The Committee emphasized it is attentive to risks on “both sides of its dual mandate” and reiterated its willingness to adjust policy if needed. For now, however, the message is one of flexibility rather than urgency, leaving markets without a clear near-term easing signal.
