Fed Holds Rates at 3.75% to 4.00%: FOMC Votes 10-2 to Keep Rate Steady, Cook and Hammack Prefer a Hike
The Federal Open Market Committee (FOMC) of the U.S. Federal Reserve concluded its two-day meeting in Washington on October 28 and approved its policy statement by a 10-to-2 vote, deciding to maintain the target range for the federal funds rate at 3.75 to 4.00 percent. Governors Lisa D. Cook and Beth M. Hammack voted against the action, preferring to raise the target range by a quarter of a percentage point at this meeting. The statement was released on the Federal Reserve's website at 2:00 p.m. EDT on October 28.
This is the Fed's first hold since its September increase. At its September 15-16 meeting, the FOMC raised the target range by a quarter point to 3-3/4 to 4 percent, its first rate increase since July 2023. The October statement said maintaining the current range supports the Federal Reserve's dual mandate, and that the Committee is continuing its policy of maintaining ample reserves in the banking system.
The statement's assessment of the economy was firm: economic activity is expanding at a strong pace; while uncertainty remains elevated, owing in part to geopolitical developments, domestic spending has been resilient; productivity growth is strong and capital investment is robust; job gains have kept pace with the workforce, and the unemployment rate has changed little.
On inflation, the statement said inflation remains elevated, and that the accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee's 2 percent goal, adding that the Committee will deliver price stability. No new Summary of Economic Projections was released at this meeting.
As GSM reported earlier this week, markets had broadly expected the Fed to hold at this meeting and were focused on Chair Kevin Warsh's press conference and the December meeting; economists surveyed by Reuters generally expect one more increase in December.
The Chair's introductory statement video is embedded on this page.
Source: GSM · USA (original Chinese edition)
Photo: 图：位于华盛顿的美联储总部埃克尔斯大楼（Eccles Building）。来源：美联储官方照片（公共领域），经 Wikimedia Commons
