The Federal Reserve voted to keep its federal funds rate unchanged in a range of 3.75 to 4 percent. Two governors, Lisa D. Cook and Beth M. Hammack, dissented in favour of a 25 basis point increase.
The decision came at the Wednesday 28 October meeting of the Federal Open Market Committee. The Fed said inflation remains elevated.
Inflation pressures persist
Consumer prices rose in September by their largest amount in five months, mainly because of energy costs. Increases were broad-based across goods and services.
The Fed’s inflation objective is 2 percent. In its statement, the committee said more information would help it decide the appropriate stance to bring inflation back to that level in a timely manner.
Growth and the data ahead
Strong consumer spending and investment linked to artificial intelligence continue to support growth. Economists expect US real GDP to grow at an annualised 3.2 percent in the third quarter.
The Personal Consumption Expenditures index for September is due Thursday 29 October from the Bureau of Economic Analysis. The decision came less than a week before the November midterm elections.
Source: Federal Reserve
