Key Takeaways
- • The Federal Reserve held its benchmark interest rate in the 3.75%-4% range despite persistently high inflation, with the decision aimed at supporting maximum employment and returning inflation to its 2% target over the long term.
- • The hold was not unanimous: Governor Lisa Cook and Cleveland Fed President Beth Hammack voted for another 0.25 percentage-point increase.
- • U.S. annual inflation rose to 3.7% in September from 3.4% in August, according to the latest statistics cited in the report.
- • The Fed said it will assess upcoming economic data before deciding on further measures and reiterated its commitment to price stability.
- • The next FOMC meeting is scheduled for December 8-9.
Summary
The United States Federal Reserve decided to keep its benchmark interest rate in the 3.75%-4% range, despite persistently high inflation. The decision is aimed at supporting maximum employment and returning inflation to the central bank's 2% target over the long term, according to the report.
The decision marks a departure from the previous meeting, when the committee approved a 0.25 percentage-point rate increase unanimously. At this meeting, two members of the Fed's leadership dissented in favor of a further 0.25 percentage-point increase: Lisa Cook, a member of the Board of Governors, and Beth Hammack, president of the Federal Reserve Bank of Cleveland.
In a statement published after the meeting, the central bank acknowledged that inflation remains elevated and said it would evaluate incoming economic data before determining any further policy steps. The report cites annual U.S. inflation rising to 3.7% in September, up from 3.4% in August. The Fed reiterated that it will act to ensure price stability and achieve its 2% target.
The next policy meeting is scheduled for December 8 and 9.
The decision marks a departure from the previous meeting, when the committee approved a 0.25 percentage-point rate increase unanimously. At this meeting, two members of the Fed's leadership dissented in favor of a further 0.25 percentage-point increase: Lisa Cook, a member of the Board of Governors, and Beth Hammack, president of the Federal Reserve Bank of Cleveland.
In a statement published after the meeting, the central bank acknowledged that inflation remains elevated and said it would evaluate incoming economic data before determining any further policy steps. The report cites annual U.S. inflation rising to 3.7% in September, up from 3.4% in August. The Fed reiterated that it will act to ensure price stability and achieve its 2% target.
The next policy meeting is scheduled for December 8 and 9.
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