The Federal Reserve Left Short-Term Interest Rates Unchanged for the sixth straight time. This year looks like last year, when Fed representatives, consistently and constantly, told everyone that rates were going higher. Then in the last meeting of the year, they raised the short-term rate a paltry 0.25%. The big difference, this time, is that the vote was 7-3. The Federal Reserve Board isn’t like the Supreme Court with split decisions. The Board generally has a unanimous decision. The last time there was a dissent was in 2005.
At September’s meeting, many Fed reps commented that conditions are very good for a rate change upwards, but they wanted to wait to the last meeting of the year to see more positive economic signs.