Federal Reserve Keeps Interest Rates Unchanged, But Two Officials Call for Another Rate Hike

On October 29, the Federal Reserve decided at this meeting to maintain interest rates unchanged, following a rate hike by the central bank last month. This move buys the Fed more time to assess whether further rate increases are necessary, aiming to prevent rising energy costs and the AI infrastructure boom from spilling over into broader inflation sectors. Passed by a vote of 10 to 2, the decision leaves the Fed's benchmark interest rate in the 3.75% to 4% range. Fed Governor Cook and Cleveland Fed President Hammad cast dissenting votes, calling for a 25-basis-point rate hike. In its policy statement, the rate-setting committee did not significantly alter Wall Street's expectations that the Fed might raise rates again at its December meeting. The statement read: “As more information accumulates, the Committee will be able to assess what appropriate policy stance will be needed to ensure that inflation returns timely to its 2% objective.” (Jinshi)