Fed leaves rates unchanged as it awaits 'accumulation of more information'
TLT•The Federal Reserve held its benchmark rate in the 3.75%-4.00% range in a 10-2 vote, with two officials favoring a quarter-percentage-point hike. It said more information would help guide policy as inflation remains elevated.
1. Fed holds rates steady
The Federal Reserve kept its benchmark interest rate in the 3.75%-4.00% range on Wednesday, saying that more information would help the committee determine the appropriate policy stance and return inflation to its 2% goal. The Fed described inflation as elevated and upgraded its assessment of the economy to “strong” from “solid.”
2. Two officials dissent
Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, favoring a quarter-percentage-point rate increase. Investors had widely expected the decision after officials indicated there was no rush to raise rates again following last month’s increase.
3. Markets react modestly
U.S. stocks pared gains slightly after the decision, while Treasury yields extended their rise; the 10-year yield reached 5.028%. Investors continued to expect further rate hikes beginning in December and continuing into 2027, as inflation remained around a percentage point above the Fed’s target.
