Federal Reserve holds rates steady as inflation remains elevated
publishers 62articles 85first reported 26 Oct, 20:10 UTCdeveloping since 27 Oct · 5 editions
The Federal Reserve held its benchmark interest rate at 3.75% to 4% on Wednesday, pausing after a quarter-percentage-point increase in September as policymakers wait for more economic data.
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. The outcome was widely expected by financial markets.
In its statement, the Fed said economic activity was expanding at a “strong pace,” supported by resilient domestic spending, robust capital investment and job growth that has kept pace with the workforce. It also said inflation remained elevated and that additional information would help determine the policy needed to return inflation to its 2% target.
Fed Chair Kevin Warsh said inflation was “too high” and emphasized the central bank’s responsibility to bring it down. The latest Consumer Price Index showed annual inflation rising to 3.7% in September from 3.4% in August, with higher energy prices accounting for much of the monthly increase.
The September increase was the Fed’s first rate hike since July 2023. Analysts cited by CBS News and market pricing reported by several outlets indicated expectations for another quarter-point increase at the Fed’s December meeting, though the central bank provided no firm guidance on its next move.
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 90 h after the record first saw the story; the editor kept it as written.
- Publishers
- 62
- Source articles
- 85
- Given to the writer
- 8, 7 with the article's own text
- Independent newsrooms
- 8
- This version written
- 90 h after the record first saw the story
- Second model (editor)
- kept as written
- Publication gate
- passed
- Human review
- none
WHAT THE EDITOR DID
The second model checked the writer's draft against the same sources and published it as written.
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