The Federal Reserve adjusted one of the tools it uses to help control the policy rate on May 1, but left its policy rate unchanged.
The Fed lowered its interest rate on excess reserves (IOER) by five basis points to 2.35%, it announced. It also unanimously voted to maintain the federal funds rate in a band between 2.25% and 2.5%.
Fed chairman Jerome Powell described it as a “small technical adjustment” that does not signal a change in stance of monetary policy, in the press conference. “The