The Federal Reserve held interest rates steady Wednesday despite two votes for a hike, maintaining borrowing costs as policymakers weighed persistent inflation against a U.S. economy the central bank described as strong.
The Federal Open Market Committee (FOMC) voted 10-2 to keep the federal funds target range at 3.75% to 4%. Federal Reserve Governor Lisa D. Cook and Cleveland Fed President Beth M. Hammack each dissented in favor of a 25-basis-point increase. In its statement, the Fed portrayed economic activity as firm while describing inflation as still high.
Before the decision, EconoTimes reported that market pricing favored a December increase over an October move.
ING's premeeting analysis judged the risk of an AI-driven equity correction to have diminished somewhat, leaving currency traders to weigh U.S. growth, inflation and energy costs. Chris Turner, ING's Global Head of Markets and Regional Head of Research for UK & CEE, said the U.S. Dollar Index (DXY) would have to clear 102.50 before 103.00 became a plausible next level. That was a conditional forecast made before the Fed decision, not a confirmed post-decision move.
South Korea's SK hynix Inc. reported preliminary third-quarter 2026 revenue of 104.6155 trillion won and operating profit of 83.3338 trillion won. Both were quarterly records for the company; revenue rose 32% and operating profit 38% from the previous quarter. SK hynix credited demand for AI memory and higher-value products, and projected the memory supply shortfall would continue through 2030. It cited the demands of advanced production processes and the time needed to build new facilities. The company also said it planned about 100 trillion won in shareholder returns during 2026, including gains from its Kioxia investment. The quarterly figures remain subject to independent audit.
The Labor Department's Bureau of Labor Statistics said consumer prices rose 3.7% over the 12 months through September. On a seasonally adjusted monthly basis, the energy index climbed 5.2% and gasoline rose 9.1%. The Energy Information Administration (EIA) said Brent crude averaged $114 per barrel in September, $23 above August, attributing the increase to attacks on Middle East oil infrastructure and tankers, including disruption to Saudi Arabia's East-West pipeline. Refinitiv data displayed by the EIA put Brent at $123.10 per barrel at the Oct. 27 close, down 3.9% from the previous close.
The Bureau of Economic Analysis estimated real U.S. GDP grew at a 2.2% annual rate in the second quarter of 2026. The agency is scheduled to release its advance estimate for third-quarter GDP at 8:30 a.m. ET Thursday, Oct. 29.
