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.
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527 Articles
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Fed Holds Rates at 4% — JRL CHARTS
By: Paul Goldberg — Senior Correspondent | LGBT Business Finance News WASHINGTON, D.C. — (October 28, 2026) — The Federal Reserve kept its benchmark interest rate unchanged Wednesday, maintaining its target range of 3.75% to 4.00% as policymakers weigh persistent inflation against continued strength in the U.S. economy. The decision, approved by a 10–2 vote [...]
Bond market swings, but U.S. stocks remain steady after Fed says it won't raise interest rates
NEW YORK (AP) — The bond market swung Wednesday, while U.S. stocks ticked higher following the Federal Reserve ’s decision not to raise its main interest rate to bring down high inflation. The bond market’s moves indicated traders see less of a chance of hikes to rates in the future that would help ease inflation but could also hurt the economy.
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