The Federal Reserve held its federal funds target range at 3.75% to 4% on Oct. 28, with two officials dissenting in favor of a quarter-point increase as inflation remained elevated.
The Federal Open Market Committee (FOMC) announced the decision at 2 p.m. EDT (18:00 UTC). Fed Governor Lisa D. Cook and Federal Reserve Bank of Cleveland President Beth M. Hammack cast the two dissenting votes; both favored a 25-basis-point increase.
The committee had raised the target range by 25 basis points at its Sept. 15-16 meeting, in a unanimous vote. That move set the range at its current level.
Price pressures remain high, the Fed said, even as household demand continued to hold up and economic activity advanced. The committee said incoming information would guide its next policy assessment, with a return to its 2% inflation goal as its aim.
The vote came six days before the U.S. midterm elections scheduled for Nov. 3. NDTV Profit reported that Federal Reserve Chair Kevin Warsh said politics had no role in the decision and that he heard no reference to elections at the meeting.
Minutes from the September meeting said a majority of participants had judged an additional rate increase would probably be warranted before 2027. The Oct. 28 statement did not say whether rates would rise in December. EconoTimes previously covered the divided vote and December rate outlook.
In a market snapshot at 3:11 p.m. EDT, NDTV Profit reported the Dow Jones Industrial Average was up 126.79 points, or 0.24%. The outlet put the S&P 500 up 0.19% and the Nasdaq Composite up 0.02%, and said stocks had retreated from earlier gains as investors assessed the decision and Warsh’s press conference.
The Fed’s calendar lists Nov. 18 for the release of the October meeting minutes and Dec. 8-9 for the committee’s next meeting.
