The Federal Reserve opted to maintain its key policy rate, disregarding President Trump’s calls for a cut intended to boost the housing sector. Two members of the Federal Open Market Committee dissented in favor of a rate reduction, displaying uncommon division within the committee. The Fed remains cautious, citing concerns over trade policies' impacts on inflation and labor markets, asserting the need for data analysis prior to any decisions. Chairman Powell highlighted the Fed's indirect influence on mortgage rates, focusing primarily on inflation and employment.
The Federal Reserve decided to keep its key policy rate unchanged despite President Trump's calls for a rate cut to stimulate the housing market.
The split decision within the Federal Open Market Committee included two members dissenting in favor of a rate cut, showing a rare divergence.
The Fed's cautious stance on rate cuts considers trade policy impacts on inflation and labor markets, prioritizing data analysis in its decision-making.
Chairman Powell emphasized that the Fed's primary focus is on inflation and employment, indirectly influencing mortgage rates through the bond market.
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