The Federal Open Market Committee voted 10-2 on October 28 to keep the federal funds rate target range at 3.75% to 4%, citing elevated inflation and the need for more data, with dissents from Lisa Cook and Beth Hammack favoring a quarter-point hike.
The Federal Reserve held its benchmark interest rate steady on October 28, maintaining the target range for the federal funds rate at 3.75 percent to 4 percent after a quarter-point increase in September.
The decision came in a 10-2 vote. Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, preferring an immediate additional 25-basis-point hike. Chairman Kevin Warsh said at the subsequent press conference that inflation remains elevated and that more information is needed to determine the appropriate path.
The accompanying statement noted that economic activity is expanding at a strong pace, job gains have kept pace with the workforce, and the unemployment rate has changed little, while inflation is described as elevated. The Committee said the accumulation of more information will help determine the policy stance needed to return inflation to its 2 percent goal.
The official FOMC statement and implementation note confirm the rate hold, the vote, and the dissenting names. New York Times, Wall Street Journal and Reuters reporting match the details of the decision and Warsh’s remarks. No independent official revision or contrary primary figure has been released.
The pause comes six days before the November 3 midterm elections and follows energy-price pressures linked to the ongoing Middle East conflict. Markets had largely priced in a hold, and the next scheduled meeting in December will show whether officials follow through on signals of possible further tightening.
Warsh denied that the election calendar influenced the decision, stating that politics played no role.
People Sentiments Public Mood: Neutral
- Warsh: inflation remains elevated
- Cook and Hammack: preferred quarter-point hike