Fed holds rates amid dissent

'No decisions' on September rate cut

- COLBY SMITH

The Federal Reserve held interest rates steady Wednesday for a fifth meeting in a row, despite officials splintering over the right time to restart cuts after an extended pause.

In standing pat, the central bank kept interest rates at a range of 4.25% to 4.5%, a level reached in December after a series of reductions at the end of last year. It marked one of the most contentious policy votes in decades, with two members of the powerful Board of Governors dissenting.

Christopher J. Waller, a governor, and Michelle W. Bowman, vice chair for supervision — both of whom were appointed by President Donald Trump — supported the Fed lowering interest rates by a quarter of a percentage point. The last time two board members opposed a decision related to monetary policy was in 1993 when Alan Greenspan was chair.

Adriana Kugler, a governor, did not attend the meeting and so did not cast a vote.

In a statement Wednesday, the Fed downgraded its assessment of the economy, saying that recent indicators suggested that growth had "moderated in the first half of the year," yet stopped short of sounding any alarm about the labour market.

"The unemployment rate remains low, the labour market conditions remain solid. Inflation remains somewhat elevated," it wrote.

The July meeting comes at a turbulent moment for the central bank and its chair, Jerome Powell, who have been the targets of a relentless pressure campaign by the Trump administration.