US Fed holds rates at 3.75–4%, but two officials vote for a hike

The US Federal Reserve kept its benchmark interest rate unchanged on 28 October, holding the federal funds target range at 3.75% to 4%, but two members of its rate-setting committee voted to raise it.

The Federal Open Market Committee (FOMC) voted 10–2. Lisa D. Cook and Beth M. Hammack dissented, both preferring a quarter-point increase in the target range.

What the Fed said

• On growth: "Economic activity is expanding at a strong pace," the statement said, citing resilient domestic spending, strong productivity growth and robust business investment.
• On jobs: "Job gains have kept pace with the workforce, and the unemployment rate has changed little."
• On prices: "Inflation remains elevated." The committee said it needs more information to judge the right policy stance for a timely return to its 2% goal, adding: "The Committee will deliver price stability."
• It said uncertainty remains elevated, partly because of geopolitical developments.

What it does not say

The statement gives no date or signal for a future change in rates.

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