Month: June 2024

On Wednesday, the Federal Reserve announced in a statement that was keeping its key interest rates steady, stating that it projects just one interest rate cut is possible before year’s end. The central bank said economic activity “has continued to expand at a solid pace,” while job gains “have remained strong, and the unemployment rate has remained low.”

The central bank kept the federal funds rate in a range of 5.25% to 5.5%; it has remained at that level, the highest in 23 years, since July of 2023. Though inflation has eased over the past year, it remains elevated — even as there has been “modest further progress toward the Committee’s 2% inflation objective.”

Fed Chairman Jerome Powell told reporters that the Consumer Price Index report released earlier Wednesday is encouraging, but noted that the central bank wants to see more evidence in coming months that inflation is on a path to return to about 2% before moving to cut the benchmark rate. Powell said that inflation has eased from a high of 7% to 2.7%, but is “still too high,” adding: “we see today’s report as progress and building confidence, but we don’t see ourselves as having the confidence that would warrant beginning to loosen policy at this time. My colleagues and I remain squarely focused on achieving our dual mandate goals of maximum employment and stable prices for the benefit of the American people. Our economy has made considerable progress toward both goals.” Powell said the Fed’s “restrictive stance on monetary policy” is to “keep demand in line with supply and reduce inflationary pressures,” and that economic activity has continued to “expand at a solid pace,” while growth of consumer spending has slowed from “last year’s robust pace but remains solid .. Committee participants generally expect GDP growth to slow from last year’s pace with a median projection of 2.1% this year and 2.0% over the next two year.”

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On Wednesday afternoon, House Republicans on voted on a resolution to hold Attorney General Merrick Garland in contempt of Congress for refusing to turn over audio of President Joe Biden’s interview with special counsel Robert Hur on his handling of classified documents.

The final vote along party lines was 216 to 207, with Rep. David Joyce of Ohio the only Republican who voted against the contempt resolution. In a statement after the vote, Joyce said, “As a former prosecutor, I cannot in good conscience support a resolution that would further politicize our judicial system to score political points.” Joyce also suggested the vote was a partisan act: “as a former prosecutor, I cannot in good conscience support a resolution that would further politicize our judicial system to score political points. The American people expect Congress to work for them, solve policy problems, and prioritize good governance. Enough is enough.”

The lower chamber’s vote to hold Garland in contempt now makes him the third attorney general in U.S. history to be held in contempt of Congress. The resolution includes a referral to the U.S. attorney of the District of Columbia for criminal prosecution, however, GOP investigators are expected to enter into a legal fight with the Justice Department to obtain the recordings.

Speaker Mike Johnson called the outcome “a significant step in maintaining the integrity of our oversight processes and responsibilities .. It is up to Congress – not the Executive Branch – to determine what materials it needs to conduct its own investigations, and there are consequences for refusing to comply with lawful Congressional subpoenas.” Johnson added: “The Committees need the audio tapes to verify the accuracy of the written transcripts given this White House has been known to heavily edit the President’s statements. This is a simple matter — we have the transcript, and we need the audio.”

Garland stated that it was “deeply disappointing that this House of Representatives has turned a serious congressional authority into a partisan weapon. Today’s vote disregards the constitutional separation of powers, the Justice Department’s need to protect its investigations, and the substantial amount of information we have provided to the Committees. I will always stand up for this Department, its employees, and its vital mission to defend our democracy.”

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