The US Federal Reserve kept its policy range at 3.75–4 percent on 28 October, following September’s increase. Two members sought a further quarter-point rise. The decision came as the central bank described strong economic activity and elevated inflation, with more information needed to determine the stance consistent with its 2 percent inflation goal.
The US Federal Reserve left its federal funds target range at 3.75–4 percent on 28 October. The decision followed an increase at the September meeting. Chair Kevin Warsh supported keeping rates steady, while Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack sought a further quarter-percentage-point increase.[1], [2]
The Federal Open Market Committee, the Fed’s rate-setting body, approved the statement by ten votes to two. Cook and Hammack’s preference for higher rates remained the minority position. Alongside its interest-rate decision, the committee continued its policy of maintaining ample reserves in the banking system.[1]
The committee described economic activity as expanding strongly, with resilient domestic spending, robust capital investment and strong productivity growth. Job gains had kept pace with the workforce, and unemployment had changed little. It also said geopolitical developments contributed to elevated uncertainty. Inflation remained high. The committee said further information would help determine the policy stance needed to return inflation to its 2 percent goal in a timely way.[1]
