US Federal Reserve holds interest rates at 3.75%-4% despite two dissents
The Fed left its benchmark rate unchanged on Wednesday, a month after its first hike in three years. Two officials voted for a quarter-point rise, and investors now expect a hike in December.
The US Federal Reserve kept its target range for the federal funds rate at 3.75%-4% on Wednesday. The Fed said inflation remains high, but it wants more information before changing rates again. It also said the US economy remains resilient despite uncertainty. The decision came in the week before the US midterm elections. Ten of the 12 committee members voted to hold rates. Governor Lisa Cook and Cleveland Fed President Beth Hammack voted to raise them to 4%-4.25%. According to Semafor, Cook had never before dissented in a Fed vote. Semafor reported that the dissents strengthen investor expectations of a hike in December. Fed Chair Kevin Warsh told reporters that September's rate rise was "starting to work some". He said inflation is still too high, but tightening credit conditions show the economy is moving in the right direction. He declined to say where rates will go at the next meeting in six weeks. According to Semafor, he said the Fed does not tolerate inflation above its 2% target. Figures released after the announcement showed the US economy grew by 3.4% on an annualised basis in the three months to September, the BBC…
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