Skip to main content
See every side of every news story
Published • loading... • Updated

Federal Reserve holds rates steady despite concerns over inflation

Two officials dissented as policymakers said they need more data before deciding on another increase.

  • On Wednesday, the Federal Open Market Committee voted 10-2 to maintain the federal funds rate at 3.75% to 4.00%, pausing after September's quarter-point hike. The central bank stated "inflation remains elevated" in its official statement.
  • Persistent price pressures, with annual inflation at 3.7%, prompted the committee's cautious approach. Officials seek "the accumulation of more information" to ensure a "timely return" to the 2% target amid energy costs and AI infrastructure spending.
  • Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, favoring a 0.25% hike. The committee upgraded its assessment of economic activity to "strong" from "solid", noting job gains are keeping pace with the workforce.
  • The decision arrives six days before the November 3 midterm elections, when policymakers are historically reluctant to implement significant changes. Futures markets now price in nearly 85% probability of a rate hike at the December 8-9 meeting.
  • Federal Reserve Chairman Kevin Warsh indicated that tighter financial conditions are intended to cool investment. Investors expect further rate hikes beginning in December and continuing into 2027 to lower inflation, which remains approximately one percentage point above the 2% target.
Insights by Ground AI
Podcasts & Opinions

527 Articles

Think freely.Subscribe and get full access to Ground NewsSubscriptions start at $9.99/yearSubscribe

Bias Distribution

  • 48% of the sources are Center
48% Center

Factuality Info Icon

To view factuality data please Upgrade to Premium

Ownership

Info Icon

To view ownership data please Upgrade to Vantage

channelchek.com broke the news on Wednesday, October 28, 2026.
Too Big Arrow Icon
Sources are mostly out of (0)

Similar News Topics

News
Feed Dots Icon
For You
Search Icon
Search
Blindspot LogoBlindspotLocal