US Federal Reserve holds interest rate steady at 3.75-4% in 10-2 vote
The US Federal Reserve voted 10-2 to maintain the federal funds rate at 3.75-4 per cent, against two dissenting votes for a 25-basis-point hike. The post-meeting statement cited persistent high inflation and a strong economy, with officials pledging to return inflation to the 2 per cent target.
The United States Federal Reserve, as widely expected, held the target range for the federal funds rate unchanged at 3.75 to 4 per cent, the central bank announced on 29 October.
The Federal Open Market Committee voted 10 to 2 in favour of the decision. Two members — Governor Cook and Cleveland Federal Reserve Bank President Hammack — dissented, supporting a 25-basis-point increase.
In a statement released after the meeting, the committee noted that inflation remains elevated. “As the committee receives more information, it will be better able to determine the appropriate policy stance to ensure that inflation returns to the 2 per cent target in a timely manner,” the statement said, adding that price stability would be achieved.
The statement also said economic activity was expanding at a robust pace. While uncertainty remained high owing to factors including geopolitical tensions, domestic spending was resilient, productivity growth was strong and capital investment was solid. Employment growth was keeping pace with labour market expansion, and the unemployment rate had changed little.