Overview
- Officials paused after three 25-basis-point reductions in late 2025 and removed language that emphasized downside risks to employment.
- The statement cited solid growth, low job gains with signs of unemployment stabilizing, and inflation that remains somewhat elevated.
- Governors Stephen Miran and Christopher Waller dissented in favor of a quarter-point cut, breaking with the majority’s decision to hold.
- Powell declined to set a specific test for future moves and highlighted meeting-by-meeting decisions while defending the Fed’s independence as the DOJ probes his testimony and a case over Governor Lisa Cook proceeds at the Supreme Court.
- Markets showed mixed signals as the S&P 500 briefly topped 7,000 and Treasury yields edged higher, with CME FedWatch indicating investors largely expect no further adjustment before June; Powell’s term ends in May and prediction markets have floated Rick Rieder and others as possible successors.