FOMC holds rates steady at January meeting

The Federal Open Market Committee today voted to maintain the target range of the federal funds rate at 3.5%-3.75%. Two FOMC members voted against the action, instead seeking further cuts.

In a statement after the meeting, the FOMC said that available indicators suggest that economic activity has been expanding at a solid pace. “Job gains have remained low, and the unemployment rate has shown some signs of stabilization,” it said. “Inflation remains somewhat elevated.”

Fed Governors Stephen Miran and Christopher Waller voted against the proposal, as they preferred to lower the target range by 25 basis points.