Financial News: Fed Leaves Interest Rates Unchanged In Unusually Divided

Fed Leaves Interest Rates Unchanged In Unusually Divided Vote

04/29/2026 - 14:26:00 (RTTNews)

(RTTNews) - For the third consecutive meeting, the Federal Reserve on Wednesday announced its widely expected decision to leave rates unchanged, although the vote was unusually divided.

The Fed said it decided to maintain the target range for the federal funds rate at 3.50 to 3.75 percent, citing its dual goals of maximum employment and inflation at the rate of 2 percent over the longer run.

In its accompanying statement, the Fed noted the conflict in the Middle East is contributing to a high level of uncertainty about the economic outlook and reiterated it is attentive to risks to both sides of its dual mandate.

While the Fed noted the unemployment rate has been little changed in recent months, the statement described inflation as "elevated" due in part to the recent surge in global energy prices.

The decision to leave rates unchanged was widely expected, although the vote was unusually divided, with four Federal Open Market Committee members dissenting for the first time since October 1992.

The Fed said Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie Logan supported keeping rates unchanged but "did not support inclusion of an easing bias in the statement at this time."

The statement said, "In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks."

The trio purportedly took issue with the use of the word "additional," as the latest actions by the Fed have been to lower interest rates.

Meanwhile, Fed Governor Stephen I. Miran also dissented, as he continued to prefer cutting rates by a quarter point.

The Fed's next monetary policy meeting is scheduled for June 16-17, with CME Group's FedWatch Tool currently indicating a 98.8 chance the Fed will once again leave rates unchanged.

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