Federal Reserve holds rates steady as inflation remains elevated
publishers 61articles 82first reported 26 Oct, 20:10 UTCdeveloping since 27 Oct · 6 editionstop 25 #10
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 said inflation was still “too high” and that policymakers must prevent recent increases in energy and related prices from spreading more broadly through the economy.
The Fed described economic activity as expanding at a strong pace, with job growth keeping pace with the workforce and little change in unemployment. Its next policy meeting is scheduled for December 8-9, and several economists expect another quarter-point increase then.
Warsh also announced that the Fed will continue holding eight meetings in 2027 but will vote on interest rates at seven, with one meeting devoted to broader monetary-policy strategy. The number of rate-setting meetings is planned to fall to six in 2028.
HOW THIS STORY WAS MADE
Written from 8 articles, 7 with the publisher's own text; 8 independent newsrooms once syndicated copies count as one; this version written 66 h after the record first saw the story; the editor kept it as written.
- Publishers
- 61
- Source articles
- 82
- Given to the writer
- 8, 7 with the article's own text
- Independent newsrooms
- 8
- This version written
- 66 h after the record first saw the story
- Second model (editor)
- kept as written
- Publication gate
- passed
- Human review
- none
WHAT THE EDITOR DID
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