Fed leaves rates unchanged as it awaits more information
TLT•The Federal Reserve held its benchmark rate in the 3.75%-4.00% range, saying it needs more information to assess inflation. Two policymakers dissented in favor of a quarter-percentage-point hike.
1. Rates held steady
The Federal Reserve left its benchmark interest rate unchanged at 3.75%-4.00% on Wednesday. The central bank said inflation remains elevated and that more information will help it determine the appropriate policy stance before its next meeting in December.
2. Two officials dissent
Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, favoring a quarter-percentage-point rate increase. The policy statement said the committee would seek a timely return of inflation to its 2% goal.
3. Economic outlook and markets
The Fed described economic growth as strong. Chair Kevin Warsh said he expects third-quarter data to show strong investment and consumer spending, while arguing that the economy is not running too hot. US stocks pared gains slightly after the decision but ended higher, while longer-dated Treasury yields rose.
