"I have nothing for you"
The Fed held rates at 3.5%–3.75% despite two dissents, with Powell striking a slightly hawkish, patient tone and repeatedly stressing the Fed is “well-positioned” to wait for the data.
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As widely expected, the FOMC left the target range for the federal funds rate unchanged at 3.5%-3.75%, with two members of the board dissenting against the decision (Stephen Miran and Christopher Waller, who both preferred a quarter point reduction).
Chair Powell’s presser leaned slightly hawkish by the end. The overall message he portrayed is that the Fed is comfortable with the current level of the policy rate and will “let the data speak to us” to lead the way for future decisions.
During the Q&A, Powell emphasised on four separate occasions that the Fed is “well-positioned” to sit and wait to see how the economy evolves.
“We’re not trying to articulate, you know, a test for when to next cut or whether to cut at the next meeting. You know, what we’re saying is we’re well-positioned, as we make decisions meeting by meeting”
“After the three recent rate cuts, we’re well-positioned to address the risks that we face on both sides of our dual mandate”