Fed Holds Rates Steady Despite Lack of Progress on Inflation
Kevin M. Warsh, the chairman of the Federal Reserve, said an “information-rich” period before the central bank’s gathering in December will help officials determine next steps for policy.
The Federal Reserve maintained interest rates on Wednesday as anticipated. Two dissenting voices, Lisa D. Cook and Kevin M. Warsh, favored a quarter-point increase. Warsh emphasized the Fed's ability to gather more information to make the right decision about rates, citing expectations about future inflation and the economy's health.
The Fed plans to hold seven policy meetings in 2027, six in 2028, with one meeting each year dedicated to broad monetary policy strategy. Warsh noted a shift in financial conditions since September, which he believes benefits the Fed's pursuit of inflation goals. The decision to hold rates steady came days before midterm elections, but Warsh stressed that politics played no role.
The White House has pressured Fed Governor Lisa D. Cook to attend a hearing to address allegations of mortgage fraud, which Trump has used as a reason to potentially remove her from her position.
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