The U.S. Federal Reserve (Fed) kept its federal funds rate unchanged at 3.50-3.75% on the 29th (local time).

Although this is the third consecutive freeze, the statement released after the Federal Open Market Committee (FOMC) meeting on the same day hinted at the possibility of a rate cut in the coming months.

Four members dissented from this decision to freeze rates, which AP reported as a highly unusual outcome, marking the largest number of dissenting votes since October 1992.

Stephen Miran, a governor appointed by Trump, advocated for a 0.25 percentage point rate cut. Meanwhile, three regional Fed presidents – Beth Hammack (Cleveland), Neel Kashkari (Minneapolis), and Lori Logan (Dallas) – agreed with freezing rates but cast dissenting votes, demanding the removal of the "easing bias" language from the statement.

AP reported that these dissenting opinions reveal a significant division within the 12-member Fed rate-setting committee, even before Chairman Jerome Powell's term ends on May 15th.

Earlier on the same day, the Senate Banking Committee approved President Trump's nomination of Kevin Warsh as the successor chairman in a partisan vote of 13 yeas to 11 nays.

While a final confirmation vote remains in the Senate plenary session, the Republican party holds a majority in the Senate, making final approval seem certain. It is expected that the inauguration will be completed before May 15th, when Chairman Jerome Powell's term expires.

In its statement on Wednesday, the Fed stated, "Changes in the Middle East situation are increasing uncertainty about the economic outlook." It also noted, "Inflation remains at high levels, partly reflecting recent increases in international energy prices."

It was pointed out that the Consumer Price Index (CPI) in March rose 3.3% year-on-year, exceeding the Fed's target range of 2%.

Conversely, the unemployment rate fell from 4.4% to 4.3% in March. The number of layoffs remains low, as employers appear to be following a strategy of "few hires and few layoffs."

Many Fed officials have indicated that as long as the unemployment rate remains low, the central bank has no need to cut rates to stimulate consumption and employment.

The next FOMC meeting is scheduled for June 16-17.

Attention is focused on what interest rate decisions the Fed will make under the Warsh administration, amid continuous pressure from President Trump for rate cuts.

The nominee for Fed Chairman, Warsh, is known to advocate for rate cuts as requested by President Trump. However, during his Senate confirmation hearing, he stated, "Presidents tend to prefer rate cuts," but also remarked, "The independence of the Fed rests with the Fed," indicating his stance of independently deciding monetary policy.

When asked by reporters at the White House on the same day whether he believed the nominated Warsh would be able to persuade other Fed governors to cut rates upon taking office, President Trump said, "We'll have to see, but he should," adding, "Because now is the time to lower rates."

Reporters: Hong Seong-gu, Chief Reporter for NNP USA / Special Dispatch NNP info@newsandpost.com