Fed leaves rates unchanged, markets shrug
TLT•The Federal Reserve held its benchmark rate at 3.75%-4.00% in a 10-2 decision, saying inflation remains elevated and further hikes may depend on incoming data. The S&P 500 rose about 0.1%, while the 10-year Treasury yield reached around 5.04%.
1. Fed holds rates steady
The Federal Reserve kept its benchmark interest rate within the 3.75%-4.00% range on Wednesday, as expected. In a 10-2 decision, policymakers said inflation “remains elevated,” upgraded their assessment of the economy and indicated further rate hikes may depend on inflation data.
2. Markets move modestly
The S&P 500 was up about 0.1% after the announcement, while the 10-year Treasury yield rose to around 5.04% from about 5.02% shortly before the statement. The probability of a 25-basis-point rate hike in December, based on the CME FedWatch tool, increased to around 86% from 81%.
