Federal Reserve holds rates steady as inflation remains elevated
The Federal Reserve held its benchmark interest rate at 3.75% to 4% on Wednesday, pausing after a quarter-point increase in September as officials awaited more data on persistent inflation.
The Federal Open Market Committee approved the decision by a 10-2 vote. Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, favoring another quarter-point increase. September’s hike was the central bank’s first since 2023.
“Inflation remains elevated,” the Fed said, adding that further information would help determine the policy needed to return inflation to its 2% target. Annual consumer inflation rose to 3.7% in September from 3.4% in August, with higher energy prices accounting for much of the increase.
Fed Chair Kevin Warsh said economic activity was moving in the right direction, citing resilient consumer spending, robust capital investment and strong productivity. However, he …