Fed Holds Rates Steady, but Two Officials Push for Another Hike

Odaily: The Federal Reserve decided at this meeting to keep interest rates unchanged, after the central bank had just raised rates last month. The move buys the Fed more time to determine whether further rate hikes are necessary and to prevent rising energy costs and the AI construction boom from spilling over into broader inflation. The decision holds the Fed's benchmark rate in the 3.75%–4% range and was approved by a 10–2 vote.

Fed Governor Cook and Cleveland Fed President Hammack dissented, advocating a 25-basis-point rate hike. In the policy statement, the rate-setting committee did not significantly alter Wall Street's expectations that the Fed may raise rates again at its next meeting in December. The statement said: "As additional information accumulates, the Committee will be able to determine the appropriate policy stance to ensure that inflation returns to the Committee's 2% objective in a timely manner." (Jinshi)