The Federal Reserve held its benchmark interest rate at 3.75%–4% on October 28 in a 10–2 vote, with two policymakers favoring a quarter-point increase. Officials reiterated their commitment to returning inflation to 2% but did not specify a policy move for December.
- Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, preferring to raise the target range by 0.25 percentage point.
- The Fed said inflation remains elevated and additional information will help determine the appropriate policy stance.
- Policymakers described economic growth as strong, domestic spending as resilient, and capital investment as robust.
- The statement said job gains have kept pace with workforce growth and the unemployment rate has changed little.
- The Fed maintained its policy of ample banking-system reserves. Interest paid on reserve balances remains 3.90%, while the primary credit rate remains 4%.
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Editor’s Note: This is a developing story. This article may be updated as more details become available.
