Fed Keeps Interest Rates Unchanged Amid Deepening Internal Divisions
The U.S. Federal Reserve (Fed) kept interest rates unchanged, but the policy statement, reflecting heightened inflation concerns, revealed the most divided decision since 1992. Three officials opposed an accommodative stance, while one advocated for a rate cut.
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- 📰 Published: April 30, 2026 at 09:47
- 🔍 Collected: April 30, 2026 at 10:01 (13 min after Published)
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Central News Agency
(Central News Agency, Washington, 29th, comprehensive foreign report) The U.S. central bank, the Federal Reserve (Fed), today decided to keep interest rates unchanged. In this decision, the most divided since 1992, the policy statement expressed heightened concern about inflation, but it drew opposition from three officials who argued that the Fed should no longer signal a tendency to lower borrowing costs.
In addition, a fourth official at this meeting held a different opinion, advocating for a 0.25 percentage point rate cut.
The Fed's statement noted, "Inflation remains elevated, partly due to recent global energy price increases." This marked a shift in tone compared to previous statements that merely described inflation as "slightly elevated."
The statement also pointed out, "Developments in the Middle East bring a high degree of uncertainty to the economic outlook."
The resolution, passed by an 8-4 vote, was the most divided since October 6, 1992, and it also indicated that incoming Fed Chairman Kevin Warsh will face widespread disagreement in pushing for rate cuts.
U.S. President Trump has stated that he expects his nominee to succeed Jerome Powell (whose term ends on May 15) to pursue rate-cutting policies.
In the Fed's latest policy statement, despite retaining language about assessing "the extent and timing of further adjustments to the policy rate," implying that future rate cuts could be the next step, three policymaking officials expressed opposition.
Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan, while supporting the maintenance of the policy rate in the current 3.50% to 3.75% range, "did not support including an accommodative bias in the statement at this time," and thus cast dissenting votes against the new statement.
At the post-meeting press conference, Powell stated: "We are in a good position to determine the extent and timing of further adjustments to the policy rate based on incoming data, the evolving economic outlook, and the balance of risks."
He also added: "Monetary policy has no preset path, and we will make decisions meeting by meeting."
With global oil prices remaining above $100 per barrel due to the U.S.-Iran war, the Fed is finding it difficult to determine whether the war's primary impact will be slower economic growth or rising inflation. Therefore, despite Trump's repeated calls for looser monetary policy, the Fed has kept interest rates unchanged since December last year.
The Fed stated that while inflation remains high, "unemployment has changed little in recent months," and the economy continues its "solid expansion."
Omair Sharif, founder of Inflation Insights, commented in a client report that the divided vote was somewhat reasonable. He said, "The new statement elevates the focus on inflation," and added that, considering price pressures, it is "not surprising" that some officials disagreed with retaining an accommodative bias.
The Republican-led Federal Senate Banking Committee earlier today voted 13-11 along party lines to advance Warsh's nomination, with Senate confirmation expected next month, making this possibly Powell's last statement. (Compiled by: Hsu Rui-cheng) 1150430
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(Central News Agency, Washington, 29th, comprehensive foreign report) The U.S. central bank, the Federal Reserve (Fed), today decided to keep interest rates unchanged. In this decision, the most divided since 1992, the policy statement expressed heightened concern about inflation, but it drew opposition from three officials who argued that the Fed should no longer signal a tendency to lower borrowing costs.
In addition, a fourth official at this meeting held a different opinion, advocating for a 0.25 percentage point rate cut.
The Fed's statement noted, "Inflation remains elevated, partly due to recent global energy price increases." This marked a shift in tone compared to previous statements that merely described inflation as "slightly elevated."
The statement also pointed out, "Developments in the Middle East bring a high degree of uncertainty to the economic outlook."
The resolution, passed by an 8-4 vote, was the most divided since October 6, 1992, and it also indicated that incoming Fed Chairman Kevin Warsh will face widespread disagreement in pushing for rate cuts.
U.S. President Trump has stated that he expects his nominee to succeed Jerome Powell (whose term ends on May 15) to pursue rate-cutting policies.
In the Fed's latest policy statement, despite retaining language about assessing "the extent and timing of further adjustments to the policy rate," implying that future rate cuts could be the next step, three policymaking officials expressed opposition.
Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan, while supporting the maintenance of the policy rate in the current 3.50% to 3.75% range, "did not support including an accommodative bias in the statement at this time," and thus cast dissenting votes against the new statement.
At the post-meeting press conference, Powell stated: "We are in a good position to determine the extent and timing of further adjustments to the policy rate based on incoming data, the evolving economic outlook, and the balance of risks."
He also added: "Monetary policy has no preset path, and we will make decisions meeting by meeting."
With global oil prices remaining above $100 per barrel due to the U.S.-Iran war, the Fed is finding it difficult to determine whether the war's primary impact will be slower economic growth or rising inflation. Therefore, despite Trump's repeated calls for looser monetary policy, the Fed has kept interest rates unchanged since December last year.
The Fed stated that while inflation remains high, "unemployment has changed little in recent months," and the economy continues its "solid expansion."
Omair Sharif, founder of Inflation Insights, commented in a client report that the divided vote was somewhat reasonable. He said, "The new statement elevates the focus on inflation," and added that, considering price pressures, it is "not surprising" that some officials disagreed with retaining an accommodative bias.
The Republican-led Federal Senate Banking Committee earlier today voted 13-11 along party lines to advance Warsh's nomination, with Senate confirmation expected next month, making this possibly Powell's last statement. (Compiled by: Hsu Rui-cheng) 1150430
Choose to stand with facts, every sponsorship is a force to protect press freedom.
Download the Central News Agency's "First-hand News" APP to stay updated with the latest news.
The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized without authorization.