The former director of the NEC, Gary Cohn and the former governor of the Federal Reserve, Kevin Warsh, analyzes the policy of the Federal Reserve on Kudlow.
On Wednesday, the Federal Reserve said that it would leave its unchanged reference interest rate following its monetary policy meeting in June while decision -makers continue to monitor inflation and data on the labor market in a high economic context.
The Central Bank’s decision leaves the rate of federal reference funds for a range of 4.25% to 4.5%.
It comes after the Fed has left the rates at this level to its three previous meetings in January, March and May. The central bank reduced rates in its last three meetings last year, which involved a reduction of 50 points in September and a pair of 25 points discounts in November and December.
The Federal Open Market Committee (FOMC), which guides the monetary policy movements of the Central Bank, noted in its announcement that “although the oscillations in net exports affected data, the recent indicators suggest that economic activity has continued to develop at a solid rate”.
“The unemployment rate remains low and labor market conditions remain solid. Inflation remains somewhat high,” noted the FOMC declaration. Political decision -makers have added that uncertainty about economic prospects “has decreased but remains high” and that the Fed is “attentive to the risks on both sides of its double mandate”, which consists in pursuing maximum employment and stable prices with long -term inflation at 2%.
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