Fed holds rates steady

The Federal Reserve kept short-term interest rates at a level of 4.25 percent to 4.5 percent on Wednesday, but the vote saw the first double dissent from Fed board officials in more than 30 years.

Nine members of the Federal Open Market Committee (FOMC) agreed to keep rates where they are.

But Fed Vice Chair of Supervision Michelle Bowman and Gov. Christopher Waller — who are both in the running for President Trump’s nomination to replace Fed Chair Jerome Powell — voted to lower them, following an immense pressure campaign from the president.

It was the first time two members of the Fed board, which usually votes unanimously, dissented in more than 30 years. All members of the Fed board are part of the FOMC, which also includes a rotation of regional reserve bank officials.

Powell downplayed the significance of the dissents during a Wednesday press conference, praising Bowman and Waller for laying out clear and logical cases for their decisions during the meeting.