Federal Reserve Holds Rates Steady, Miran and Waller Dissent 

The Federal Open Market Committee maintained the federal funds target range at 3.50%-3.75% on Wednesday, as expected. Federal Reserve Governors Stephen Miran and Christopher Waller dissented, both voting for a quarter-point cut. 

The economic backdrop has reinforced the central bank’s confidence that it can afford to pause rate cuts, at least for now. Only a few months ago, labor market softness was a growing concern among policymakers. Those worries haven’t disappeared, but they have clearly faded, particularly as growth has proven more resilient than many economists had anticipated. 

Markets will now turn their attention to Fed Chair Jay Powell’s press conference, parsing his remarks for clues on the policy path ahead. This time, however, the usual rate-focused scrutiny is compounded by heightened uncertainty around Powell’s role and the Federal Reserve’s independence. Investors will be listening closely for any shift in tone as political pressure on the central bank intensifies, particularly from voices pushing for lower rates.