Overview
- The Federal Open Market Committee voted to keep the federal funds target at 3.75–4.00 percent, a decision the committee made on Oct. 28 to pause further tightening.
- Officials said they want to assess how last month's 25 basis-point increase is affecting the economy and price growth before deciding on more action.
- Two FOMC participants, including Governor Cook, dissented and voted for an immediate 25 basis-point hike, reflecting an internal split over the need for faster tightening.
- Policymakers cited higher consumer prices — September CPI rose 3.7 percent year-on-year — and crude oil trading above $100 per barrel as factors that keep upside inflation risks elevated.
- Markets, voters and policymakers will be watching incoming inflation and labor data and oil-market moves for signs the Fed must resume rate increases or can keep waiting.