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4h ago

Fed Holds Rates at 3.75%–4.00% After Divided Vote

Inflation remains elevated with incoming data, notably September's PCE, set to determine whether policymakers raise rates in December.

El presidente de la Reserva Federal, Kevin Warsh, durante una conferencia de prensa tras una reunión del Comité Federal de Mercado Abierto en Washington, el 16 de septiembre.
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La Reserva Federal decide no subir las tasas de interés antes de las elecciones del 3 de noviembre en Estados Unidos, mientras los mercados anticipan otro incremento en diciembre para intentar controlar la inflación. | Crédito: REUTERS
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Overview

  • The Federal Open Market Committee voted 10–2 on Wednesday to keep the target federal funds rate at 3.75%–4.00%.
  • Two members, Governor Lisa Cook and Cleveland Fed President Beth Hammack, dissented and preferred an immediate 25‑basis‑point increase.
  • The Fed upgraded its view of U.S. activity to “strong” while warning that inflation stays high and that it will collect more information before changing policy.
  • Markets largely expected the pause for October and quickly pushed up the odds of a 25‑bp move in December, prompting mixed reactions across U.S. stock indexes.
  • Officials said September's PCE price index and fresh GDP readings, due Thursday, will be decisive for the December 8–9 meeting and could influence global borrowing costs and emerging‑market spreads.