Fed holds rates as two officials push for a hike
The Federal Reserve kept its key rate at 3.75%-4% in a 10-2 vote, with two policymakers preferring a quarter-point increase as inflation stays high.
The US Federal Reserve left its benchmark interest rate unchanged on Wednesday, keeping the target range at 3.75% to 4%, where it has been since a quarter-point increase in September. The decision was widely expected by markets.
The vote was 10 to 2. Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack both dissented because they wanted to raise rates by another quarter point. It was Cook's first dissent since she joined the Fed's board in 2022.
In its statement, the central bank described the economy as expanding at a strong pace but said inflation remains elevated. Policymakers said they want more information before deciding their next step, and committed to bringing inflation back to their 2% goal.
At his news conference, Chair Kevin Warsh said politics played no part in the decision. He also announced a change to the Fed's calendar: one of the eight meetings in 2027 will be devoted to long-term strategy, with no vote on rates.
New figures on Thursday underlined the inflation worry. The Fed's preferred price measure, the personal consumption expenditures index, rose 0.5% in September and was up 3.6% from a year earlier, in line with forecasts. Many economists expect the Fed to raise rates again in December.
This summary is original reporting by tehworldnews, written after checking the facts against several major international news outlets and official statements.