Rates hold steady ahead of Fed chair transition

(The Center Square) – The Federal Reserve wrapped up what could be its last meeting under current Chair Jerome Powell on Wednesday with a decision to hold rates steady, in line with market predictions. This marks the third consecutive meeting where the board has maintained a target interest rate of 3.5%–3.75%. The central bank often raises interest rates to tame inflation and lowers them if economic growth is too slow. While oil and gas prices have risen dramatically in the past couple months pushing inflation higher above the Fed’s target rate of 2%, other parts of the economy aren’t seeing as much movement. “The U.S. economy has been expanding at a solid pace. While job gains have remained low, the unemployment rate has been little changed in recent months,” Powell explained Wednesday with the rate announcement. “We see the current stance of monetary policy as appropriate to promote progress toward our maximum employment and 2% inflatio