The Federal Reserve said Wednesday it is leaving its benchmark interest rate unchanged, marking its first pause after three consecutive rate cuts last year.

Decision and vote split

The Fed maintained the federal funds rate in a range of 3.5% to 3.75%.

The decision matched expectations from Wall Street economists, according to FactSet.

The Federal Open Market Committee was not unanimous.

Ten members, including Fed Chair Jerome Powell, voted to hold rates steady.

Stephen Miran and Christopher Waller voted to lower the rate by 0.25 percentage points.

Inflation and growth backdrop

In its statement, the Fed cited a “solid pace” of economic activity and said the unemployment rate remains low.

It also noted inflation “remains somewhat elevated.”

Prices rose at a 2.7% annual pace in December, according to the Consumer Price Index.

Market reaction and Fed turmoil

Goldman Sachs Asset Management’s Kay Haigh said the Fed may be set for a longer pause.

Haigh wrote in an email after the announcement:

“The Fed is likely on an extended pause with strong activity data and signs of stabilization in the labor market suggesting little need to take out further insurance.”