Fed holds rates at 3.75%-4% as inflation stays high

· Finance · United States

The Federal Reserve's FOMC voted 10-2 to hold its benchmark federal funds rate in a range of 3.75% to 4%, leaving interest rates unchanged as inflation remains elevated. Chairman Kevin Warsh said inflation is still too high and that policymakers will "deliver price stability," while explaining the pause by pointing to an "information-rich" period ahead. The central bank gave little clear signal on whether it will act in December; many observers still expect a rate hike. The Fed will also shift to seven policy meetings next year instead of eight.

Why it matters：A pause with an explicit inflation warning keeps borrowing costs elevated for households and businesses, and the move to fewer meetings changes how often markets get policy signals.

Key points

  • Vote was 10-2 to hold
  • Chairman Warsh said inflation is still too high
  • Fed to hold seven policy meetings next year

Sources (original reporting)

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