NEW: The Federal Reserve leaves its key interest rate unchanged, but signals that it's prepared to start cutting rates if needed to protect the U.S. economy from trade conflicts and other threats.
The Federal Reserve left its key interest rate unchanged Wednesday but signaled that it's prepared to start cutting rates if needed to protect the U.S. economy from trade conflicts and other threats.
The Fed's decision was approved on a 9-1 vote, with James Bullard, president of the Fed's St. Louis regional bank, dissenting because he thought the central bank should begin cutting rates now. It marked the first dissent from a Fed decision since Powell became chairman in February last year. Many Fed watchers have said they think the policymakers want to first see whether a meeting that Trump and President Xi Jinping are to hold late next week produces any breakthrough in the U.S.-China trade war.
This week, Trump was asked about a news report that the White House in February had explored whether the president had the authority to demote Powell as chairman while leaving him on the Fed's board.
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