Fed holds interest rates steady even as inflation remains high
The U.S. central bank left borrowing costs unchanged this month after hiking rates in September for the first time in three years.
On Wednesday, the Federal Reserve maintained its interest rates at a target range of 3.75% to 4%, despite inflation remaining high. This decision followed a September hike in borrowing costs for the first time in three years. The central bank acknowledged that economic activity is growing strongly, but inflation remains elevated.
Fed Chairman Kevin Warsh will discuss the decision at a press conference later in the day. The Federal Open Market Committee voted 10-2 to keep the benchmark rate steady, with two members voting to raise it. Economists and financial markets anticipate the Fed will raise rates in December and again in 2027. Factors such as the Iran war and high energy costs have contributed to elevated inflation, making it challenging to achieve the Fed's 2% inflation target.
While the Fed is holding rates steady for now, consumers may face higher borrowing costs in the future, particularly during the holiday shopping season.
Written by urgent.news from CBS News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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