Fed holds interest rates steady despite surging inflation

The United States Federal Reserve held interest rates steady on Wednesday, keeping the federal funds rate at a target range of 3.75% to 4%, according to CBS News. The decision, which aligned with market expectations, comes days before the midterm elections where inflation and affordability have been key issues, according to Financial Post and CBS News. The Korea Times reported the rate remained unchanged at about 3.9 percent.

The Federal Open Market Committee decision was not unanimous. CNBC World reported that two of the 12 voters dissented, seeking a quarter percentage point increase. The Korea Times identified the dissenters as Fed governor Lisa Cook and Federal Reserve Bank of Cleveland President Beth Hammack, while WSJ Economy noted that governor Lisa Cook dissented.

In a statement, the Fed acknowledged that inflation remains elevated and noted that economic activity is growing at a strong pace, according to CBS News. The central bank stated that holding rates steady will allow for the accumulation of more information to help determine a policy stance that ensures a timely return of inflation to the 2% goal, according to CBS News and The Korea Times. WSJ Economy reported that officials have hinted a December increase is likely.

Brief written by urgent.news from Financial Post, CNBC World, CBS News, The Korea Times, WSJ Economy — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.