The Federal Reserve held its benchmark interest rate steady
The Federal Reserve voted 10-2 Wednesday to hold its benchmark rate at 3.75% to 4%, following September’s quarter-point increase, its first in three years. Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented in favor of another increase. The committee described economic activity as “strong”; CBS News said many economists expect a December hike.
More context
The Federal Reserve held its benchmark interest rate steady Wednesday, leaving the federal funds rate at 3.75% to 4% after a quarter-point increase in September, the first in three years. The Federal Open Market Committee approved the decision 10-2. Fed governor Lisa Cook and Federal Reserve Bank of Cleveland President Beth Hammack dissented, favoring another quarter-point hike.
The committee said economic activity was expanding at a “strong” pace, up from “solid” in September, and that more information would help it decide how to return inflation to its 2% goal. Fed Chair Kevin Warsh held a news conference after the meeting. CBS News reported that many economists expect another increase at the Fed’s December meeting. PGIM chief U.S. economist Robert Sockin said inflation was too high to justify holding rates steady.
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Reporting
- The Wall Street Journal — Fed Holds Rates Steady But Two Officials Sought Another Increase - WSJ
- The Washington Post — The Federal Reserve held interest rates steady - The Washington Post
- CBS News — Federal Reserve holds interest rates steady even as inflation remains high - CBS News
- Axios — Fed leaves rates steady as governor Lisa Cook dissents
- Fortune — Kevin Warsh: Fed holds despite inflation spiking as FOMC wrangles oil problem | Fortune
- CNBC — Kevin Warsh is learning to wield the Fed's power without showing his hand --analysis
Verifier’s note
The Wall Street Journal, The Washington Post, CBS News, and Axios report that the Fed held rates steady after its September increase; Fortune and CNBC also report the current decision in their coverage and analysis. Their timing and central claims are consistent, and the reports are within about 24 hours of the event.