The FOMC Is Holding Rates While Watching the Data
The Federal Open Market Committee voted 93 to maintain the federal funds target range at 3.5% to 3.75%.
That decision is less about declaring victory than about buying time. The Committee is balancing inflation that is still above target against a labor market and growth outlook that do not justify unnecessary tightening.
The dissent matters because it shows the policy path is not unanimous. Some officials see room to ease; others want more evidence that inflation is moving sustainably lower.
For markets, the signal is patience. Watch the data that changes the reaction function: core inflation, employment, wages, and financial conditions. The next move depends less on the calendar than on whether the economy is cooling without breaking.
