Federal Reserve holds rates steady despite concerns over inflation
Policymakers cited elevated inflation and said more data will help determine whether another rate hike is needed.
- On Wednesday, the Federal Open Market Committee voted 10-2 to keep the federal funds rate at 3.75%–4.0%, pausing after September's increase while officials await more incoming economic data.
- Inflation rose to 3.7% in September, driven by soaring global energy costs; Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, favoring a quarter-percentage-point hike to combat price pressures.
- The pause arrives less than a week before the November 3 midterm elections, when officials traditionally avoid controversial policy shifts to preserve institutional independence from day-to-day politics.
- Futures market pricing indicates a strong possibility of another hike at the December meeting, while Fed Chair Kevin Warsh will discuss the decision at a 2:30 p.m. EDT press conference.
- Policymakers stated the committee will await more information to ensure a "timely return of inflation" to the Fed's 2% target, reflecting a cautious stance balancing strong growth against stubborn inflation.
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190 Articles
Federal Reserve keeps rates unchanged despite elevated inflation, gives little signal of next move - Boston News, Weather, Sports
WASHINGTON (AP) — The Federal Reserve kept its key rate unchanged Wednesday at about 3.9% despite stubbornly high inflation, while providing little hint about the...
Fed Pauses Rate Hikes Despite Inflation Worries
The Federal Reserve has decided to sit night, even as prices keep climbing. The central bank, as wisely expected, left its benchmark rate changed at 3.75% to 4% on Wednesday, with traders getting the break will be followed by another hike in December. Last month, the central bank hiked...
BT
Kristeligt DagbladThe Fed decided to maintain interest rates at Wednesday's interest rate meeting. However, the decision was not unanimous.
After raising interest for the first time since 2023 at the last meeting, the Federal Reserve (Fed, the American central bank) kept interest rates unchanged in the range of 3.75% to 4% on Wednesday, in line with market consensus. The vote, however, was not unanimous, with disagreements from the leader Beth Hammack, Cleveland district, and director Lisa Cook. The monetary policy committee stated that economic activity is expanding at a strong pac…
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